Let’s see, if Willis has $3.8 Billion in revenue and Towers has $3.5 Billion in revenue, how does that add up to $8.2 Billion combined? Simple math says $7.3 Billion combined. Perhaps an actuary made up those numbers to publish.
The paragraph following the numbers you posted answers your question, sir.
“…the combination is expected to result in $100-125 million in cost savings within three years of closing, primarily related to the elimination of duplicate costs and economies of scale, in addition to increased efficiencies [sic]”
I could see profits increasing. But the two “A’s were discussing revenues.
Yes, increased efficiency could increase revenues. But if that were true, why wouldn’t all brokers merge into a single, most efficient broker – with ALL insurance and reinsurance revenues increasing (beyond the total insurance market volume)? I hope you see the fallacy in the premise. Hint: the insurance market has a theoretical maximum total premium… which shouldn’t rise due to increased broker efficiency.
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Ummm…. yeah, an Actuary is likely to be the one publishing optimistic revenue estimates….
Optimistically $900 million off I would say.
Yup. Projecting revenue optimistically ~10% too high. Sounds like an Agent.
The paragraph following the numbers you posted answers your question, sir.
“…the combination is expected to result in $100-125 million in cost savings within three years of closing, primarily related to the elimination of duplicate costs and economies of scale, in addition to increased efficiencies [sic]”
I could see profits increasing. But the two “A’s were discussing revenues.
Yes, increased efficiency could increase revenues. But if that were true, why wouldn’t all brokers merge into a single, most efficient broker – with ALL insurance and reinsurance revenues increasing (beyond the total insurance market volume)? I hope you see the fallacy in the premise. Hint: the insurance market has a theoretical maximum total premium… which shouldn’t rise due to increased broker efficiency.
Sinnergee. Pure and simpel.
Well this will be interesting – did not see it coming.
Towers and Willis merge. Ace buys Chubb. I wonder who would buy or merge with Aon…Pee Wee Herman?