Willis Re said it will snatch up the assets of a specialized professional advisory and reinsurance broking firm, giving it a boost in the North American accident and health insurance sector.
The North American reinsurance division of Willis Group Holdings plc did not disclose financial details concerning its purchase of SurePoint Reinsurance Advisors LLC, which will close late in the 2014 third quarter or early fourth quarter. Willis Re noted in the deal announcement, however, that SurePoint’s specialist services to insurance companies in the employee benefit market will enhance its own expansion plans.
“SurePoint has a very impressive track record in this specialized area of the re/insurance market,” Willis Re North America CEO Jim Bradshaw said in a statement. “Its consistent performance is testament to its strong management tam, the culture they have fostered and the expertise they have built, all of which are extremely attractive to us. Bringing their expertise to Willis Re, complementing and building on our existing capabilities in the [accident and health] arena, will provide an even more compelling offering for our clients and prospects in this space.”
Willis Re noted that the A&H market within North America is healthy and growing.
SurePoint launched in Maine in 2005, led by re/insurance industry executives Jim Fallon, Mike Lachance and Rob Fast, Willis Re said. Once the deal goes through, the company will become known as Willis Associates, though it will continue to be based in Portland, Maine with the three founders still in charge. Each of the men will also take on new leadership responsibilities within Willis Re.
Fast, in a statement, said that “combining SurePoint’s Group Life, Disability, and voluntary business expertise with Willis Re’s medical and catastrophe expertise” will create “a unified team with additional tools and insights to drive value for clients.”
It is smart for Willis Re to pursue areas of growth, considering how competitive the reinsurance market has become overall. Back in July, Willis said that heavy competition lead to major rate reductions and expanded terms and conditions in the broader market for many June 1 and July 1, 2014 renewals.
Source: Willis Re