WTW to sell insurance distribution unit to public-equity firm for $632.4 million

(Reuters) — Willis Tower Watson said Tuesday it would sell its direct-to-consumer insurance distribution business to private-equity firm GTCR for $632.4 million.

The London-based insurance broker had bought the unit, Tranzact, for $1.2 billion in 2019 to expand its footprint in the market for government-supported Medicare insurance plans.

The company expects the deal will result in noncash pretax losses and related impairment charges of between $1.6 billion and $2.1 billion, which will be recorded in the third quarter of this year.

“With the sale of Tranzact, we are exiting this direct-to-consumer market and accelerating our progress toward our long-term free cash flow margin goals,” WTW CEO Carl Hess said.

BofA Securities and Lazard are financial advisors to WTW for the deal.