AJ Gallagher

AJ Gallagher is on the cusp of a deal to acquire Willis Re, and the transaction is likely to be announced imminently, this publication can reveal.

Owning a sizeable reinsurance broker offers the parent benefits that go well beyond the unit itself.

RJ Riordan & Co is a retail property/casualty broker that specializes in the construction and transportation industries in the Chicago region.

The investment bank said a transaction would stabilise employee retention at Willis Re and allow Willis to pursue buybacks.

Sources have said a deal could be signed as soon as the middle of the week, with a valuation higher than the last agreement.

“There are a lot of great people at Willis, and they would have been a great addition to our team,” the CEO said.

The broker expressed disappointment in not completing its planned acquisition of some Willis Towers Watson brokerage operations, but touted the success of its tuck-in acquisition strategy.

In its mid-year construction trends report, Gallagher emphasizes the need for brokers specializing in construction to help the industry address challenges.

The executive has more than two decades of experience in tech and finance.

The broker said CUOs insisting underwriters renew with price increases risked losing quality business.

The Illinois-based broker said it would also redeem $650mn in 10-year notes that it issued in May.

Shares in rival broker AJ Gallagher, whose plans to buy several Willis assets at a knock-down price are now highly uncertain, were down by 2.3% at $139.