London-based Jardine Lloyd Thompson Group P.L.C. will acquire the reinsurance brokerage business of Towers Watson & Co. for a cash consideration of $250 million, the companies said Friday.

In a joint statement, the brokers said that when the deal is completed, which is subject to regulatory approval and which is expected to close by the end of the year, Towers Watson's reinsurance brokerage business will be merged with JLT's reinsurance business, JLT Reinsurance Brokers Ltd.

The combined business, called JLT Towers Re for a transitional period will operate in the international reinsurance market with combined revenue of $266 million and 700 people in 35 locations in 17 countries.

Towers Watson's reinsurance brokerage business generated revenue of $166 million and $26 million in profit before taxes in the year that ended in June and was listed as the fourth largest reinsurance broker in Business Insurance's 2012 rankings.

“This acquisition significantly accelerates JLT's existing strategy to build out its international reinsurance brokerage operations,” the companies said in the statement. “It combines Towers Watson's well-established North American and London market reinsurance businesses with JLT Re's international reinsurance operations, dynamic brand and strong London market operation.”

The combined business will have greater capabilities, scale and market presence, the companies said.

Ross Howard, now head of Towers Watson's reinsurance brokerage business, is to become executive chairman of the merged operation.

Alastair Speare-Cole, currently CEO of JLT Re, is to become CEO of the combined business.

In addition, Alan Griffin is to step down as chairman of JLT Re, but have a board and advisory role.

“I am delighted to be able to welcome the Towers Watson team and their clients to JLT,” JLT Group Chief Executive Dominic Burke said in the statement. “Towers Watson offers us a very strong reinsurance platform in the key North American market, as well as bringing further strength in the London market and a leading analytical capability.”

“JLT Re has a very clearly articulated strategy to expand its reinsurance operations in the U.S. in particular,” said James Twining, group commercial director of JLT. “Towers Watson allows us to implement that strategy and brings a fantastic business that's been in the reinsurance game since 1935 and has had fantastic analytical capability. Merging it with JLT Re recreates a global player and really changes the landscape of the reinsurance industry.”

“We see a great opportunity to grow the business by attracting talent from other players and winning market share through the acquisition,” he said.

“We are positively surprised by JLT's announced acquisition of Towers Watson's reinsurance brokerage activities,” said Keefe Bruyette & Woods Inc. in a statement issued Friday. “We think it represents a major step forward for JLT Re in the U.S. and hence globally. It could also offer an upgrade for JLT Re's modeling and consulting capability.”