Insurance brokerage firm Willis Group has completed the sale of US wholesale unit, Stewart Smith Group, to American Wholesale Insurance Group for an undisclosed sum.
London-based Willis was eager to divest the business following investigations carried out by New York Attorney General Eliot Spitzer. The Stewart Smith subsidiary is alleged to have been used to inflate fees to customers. Last week, Willis reached a settlement with Spitzer that will see the broker repay $51 million to affected customers.
The transaction, meanwhile, offers American Wholesale the opportunity to extend its footprint in Florida, Tennessee, Michigan.
Bringing together Stewart Smith with our existing brokerage operation makes great sense, said Steven DeCarlo, AmWINS president and CEO. This transaction continues what we started almost three years ago – providing solutions exclusively to retail agents and brokers. The difference now: we have broader geographic presence, expanded people power, practice teams, and a well established and trusted trading relationship with brokers across the country.