Jardine Lloyd Thompson to be acquired by Marsh & McLennan in $5.6bn deal

MMC acquisition of JLT : British insurance and reinsurance broker Jardine Lloyd Thompson (JLT) Group has agreed to be acquired by insurance broking and risk management major Marsh & McLennan Companies (MMC) in an all-cash deal of $5.6 billion.

JLT, which was founded in 1997 by the merger of Jardine Insurance Brokers with Lloyd Thompson Group, has operations in 40 countries. The British insurance and reinsurance broker is well established in the UK and Australia.

The specialty business of JLT is engaged in risk and insurance broking advice for clients across a wide range of business sectors like mining, energy, healthcare, construction, marine and aerospace sectors.

JLT Re, the reinsurance of business of the British insurance and reinsurance broker, provides risk analysis and risk transfer solutions to insurers across all classes of treaty and facultative reinsurance.

The company’s employee benefits team offers advice and brokering among other services in the areas of employee benefits and wellness, pensions consultancy and administration, life insurance, and wealth management.

MMC acquisition of JLT

MMC acquisition of JLT is expected to bolster its specialty risk broking and also grow its global reinsurance network, and improve its position in Latin America and Asia.

The British insurance and reinsurance broker is said to have delivered significant growth geographically and in terms of products offering.

According to the terms of the MMC acquisition of JLT, MMC will pay $25.19 for each JLT share in cash.

Commenting on MMC acquisition of JLT, Dan Glaser – President and CEO of MMC, said: “The acquisition of Jardine Lloyd Thompson creates a compelling value proposition for our clients, our colleagues and our shareholders. The complementary fit between our companies creates a platform to deliver exceptional service to clients and opportunities for our colleagues.

“On a personal level, I have come to know, and respect, Dominic Burke and his management team from my time both at MMC and as an underwriter. I am confident that with the addition of the talented colleagues of JLT, Marsh & McLennan will be an even stronger and more dynamic company.”

MMC acquisition of JLT is likely to be wrapped up in spring 2019, depending on approval by JLT shareholders and antitrust and regulatory approvals.

After completion of MMC acquisition of JLT, Dominic Burke – JLT Group CEO will take up the role of Vice Chairman in MMC and will also be a member of its executive committee.

Dominic Burke, commenting on MMC acquisition of JLT, said: “I am enormously proud of what JLT has achieved, founded on our people, our culture and our unwavering commitment to our clients. MMC is, and always has been, one of our most respected competitors and I believe that, combined, we will create a group that will truly stand as a beacon for our industry.”