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Law360, London (April 6, 2020, 3:03 PM BST) -- Insurance broker Willis Towers Watson has hit pause on the planned sale of its wholesale subsidiary amid the turmoil of the COVID-19 outbreak.
Willis Towers said Friday that it will shelve efforts to explore "strategic alternatives" for its Miller wholesale arm because of the uncertainty caused by the pandemic. The coronavirus has infected more than one million people worldwide.
"Given the current COVID-19 outbreak and associated uncertainty, we have paused our current efforts to explore strategic alternatives for Miller. WTW and Miller remain committed to the process and will make an announcement in due course," a spokesperson for Willis Towers Watson said.
The broker announced in February that it and Miller were considering alternative plans for the wholesale arm.
It said the company strategy has evolved since Willis Towers was formed in 2016 and that both Willis and Miller agree this is the time to consider a sale to "maximize growth" for Miller. The two companies said they will continue to have a close relationship after any sale takes place.
The news comes after insurance giant Aon PLC bought Willis Towers for $30 billion.
The takeover was advised by Latham & Watkins LLP and Freshfields Bruckhaus Deringer LLP for Aon, and by Weil, Gotshal & Manges LLP and Skadden Arps Slate Meagher & Flom LLP for Willis Towers Watson.
The deal will combine the world's second and third biggest brokers by revenue and create a company worth $80 billion.
The combined business could now be the biggest broker in the world, surpassing Marsh, which last year secured its place in the top spot after buying broker JLT for $5.6 billion.
There has been increased consolidation among major brokers. Law firm Clyde & Co LLP said last month that insurance mergers and acquisitions had increased by 10% globally in 2019.
Marsh announced in 2018 that it was buying U.K.-based rival JLT, which was at the time the eighth biggest broker in the world by revenue. That acquisition closed in April 2019 and led to some senior JLT executives leaving the business.
The insurance industry has been hit hard by disruptions associated with COVID-19. The Association of British Insurers said Friday that insurers expect to pay more than £1 billion ($1.2 billion) in claims connected with coronavirus losses.
--Additional reporting by Martin Croucher. Editing by Ed Harris.
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