Willis Towers Watson Overhauls Its Board Following Activist Push

(Bloomberg) -- Willis Towers Watson Plc is adding four new members to its board after activist investors pushed for changes at the insurance brokerage following the collapse of a $30 billion planned sale to Aon Plc.

Inga Beale, Fumbi Chima, Michael Hammond and Michelle Swanback will join the board “following a constructive engagement with Elliott Investment Management LP,” the firm said in a statement Thursday. Beale, Hammond and Swanback will become directors on Jan. 1, when Carl Hess becomes the company’s chief executive officer. Chima will join the board on April 1, after another commitment ends.

Willis Towers Watson cited Elliott, run by billionaire Paul Singer, as one of its largest investors. Activist firm Starboard Value has also taken a position in the brokerage, which has executive offices in London, in recent months. The deal with Aon fell apart in July after the two companies failed to convince U.S. regulators that the combination, which would have created the world’s biggest insurance brokerage, wouldn’t hurt competition. 

The new board members have experience in the industry, with Beale previously serving as CEO of insurance syndicate Lloyd’s of London, and Hammond having held roles at several international insurance brokerage firms, Willis Towers Watson said in the statement. As part of the transition, board member Jaymin Patel will step down Jan. 1, and Chairman Victor Ganzi won’t run for re-election to the board. Two other board members will finish their terms but not seek re-election to keep the number of directors at nine. 

“We look forward to continuing to engage with Elliott and our other shareholders as we continue the process of refreshing the Willis Towers Watson board and moving forward with our strategic plan to enhance the value of the Company for the benefit of shareholders,” Ganzi said in the statement.

Since the Aon combination collapsed, Willis Towers Watson has taken several steps to overhaul its business and better position itself to operate independently. Those moves include the sale of its global reinsurance business to Arthur J. Gallagher & Co. for $3.25 billion, as well as naming a new CEO and chief financial officer.

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