AJ Gallagher

S&P said it believed Gallagher can "non-disruptively absorb the acquired business".

Despite the sizable divestitures at a painful price, the deal maintains its appeal across most strategic and financial aspects.

The AJG CEO vowed to invest in Willis Re assets while stressing the quality and security of the team.

The buyer says the deal involves revenue of about $1.3bn and earnings of around $357mn.

The deal is designed to address antitrust concerns to smooth the way for the mega merger to close.

The deal could be signed later this week or at the weekend, sources said.

After the strong organic growth from Marsh McLennan and Brown & Brown, Willis Towers Watson and AJ Gallagher followed suit with 5% growth in underlying brokerage revenues.

With a sale of the remedy assets to AJG not yet agreed, the firms will have to choose their words carefully this week.

The rapid execution of AJ Gallagher’s March 2019 deal to buy JLT’s aerospace broking arm “didn’t seem to sacrifice anything” in terms of due diligence or deal value process, Gallagher CEO Pat Gallagher told analysts today.

Gallagher's brokerage business grew by 6%, while the company also said it closed 5 acquisitions in the quarter with $90mn in estimated annualized revenues.

With around 50 members of staff across the business, the divestiture is not expected to significantly alter the competitive landscape.

The number four broker is seeking to acquire both Willis Re and the European insurance broking businesses.