Major brokers JLT, Willis in $40 million settlement

Major brokers JLT, Willis in $40 million settlement | Insurance Business

Major brokers JLT, Willis in $40 million settlement
JLT and Willis have reached a multi-million dollar settlement before the two international brokers were set to head to the High Court in the United Kingdom over the hiring of 22 staff members.

In April 2015, Willis announced that they were taking legal action against JLT and a former employee for damages related to JLT’s alleged poaching of Willis staff from the Fine Art, Jewellery and Specie division of the firm.

In a statement to the London Stock Exchange, JLT said that the two parties had reached a settlement as their case was due to be heard in the High Court this month.

“Jardine Lloyd Thompson Group plc has reached a settlement and concluded litigation with Willis regarding certain employment related disputes involving the Fine Arts, Jewellery, and Specie team hired by JLT,” the statement said.

The broker will take a hit of approximately $41 million (£22 million) in its second quarter results as a condition of the settlement.

“A provision of approximately £22 million will be charged as part of second quarter results as a consequence of the settlement, relating to the settlement itself and associated costs, and is incremental to any previously raised litigation provisions,” the statement continued.

“This charge will be treated as an exceptional item and included in net litigation costs, as it is unrelated to the underlying business and trading performance of the Group.

“Terms of the settlement are final and confidential and the matter is now closed. in 2015,” the statement continued.