IRELAND – Global insurance broking giant Willis Group has reached an agreement in principle to buy Coyle Hamilton, Ireland’s leading broker and risk management consultancy.

The deal would be the largest made by US-based Willis under chairman and chief executive, Joe Plumeri, since he took the top job in October 2000. But Willis has admitted it is still underweight in the UK, one of Europe’s largest insurance markets, and has a well-announced intention of becoming market leaders in all its markets. Willis said it was market leading in Denmark, Germany, Scandinavia, Spain, Ireland and the Netherlands and third in Italy following a recent acquisition.

Although the terms were unannounced, Willis said it would take a majority stake in Coyle Hamilton before completing the buy-out over the next few years. Coyle Hamilton has 500 employees providing insurance broking, risk management and employee benefits and pensions advice. In its financial year to August 2003 had turnover of €51.2m and net profit of €5.4m.

Willis’ existing Eire operation, employing 35 people, will be merged into the acquisition to create Coyle Hamilton Willis under Coyle Hamilton’s current chief executive, Hugh Governey. Governey will report to Allen Gribben, chief executive of Willis UK & Ireland. Coyle Hamilton’s operations in the UK and Northern Ireland will be merged into Willis.

Governey said: “The insurance, reinsurance and benefits consulting businesses have become increasingly global over the past decade. This transaction will enable the businesses of Coyle Hamilton and Willis to offer a significantly enhanced range of services and resources.”

Willis’ spokesman said its expertise in dealing with employee benefit issues in the US would be a core synergy, especially for multi-national clients.