Herbert Smith Freehills has advised Willis Group Holdings, the global risk adviser, insurance and reinsurance broker, on the formation of a leading London-based wholesale specialist insurance broking firm with Miller Insurance Services LLP.

Willis and Miller have reached the agreement to combine the firms' respective wholesale businesses to trade under the Miller brand, managed, governed and regulated as a standalone legal entity and separate Lloyd's broker.

Under the terms of the transaction, which is subject to regulatory approval and is expected to close in the second quarter of 2015, Willis will become a corporate member in Miller Insurance Services LLP by taking a majority (85%) interest in the partnership. Partners of Miller will retain the remaining interest so that it can be transferred to new generations of Miller partners in perpetuity.

The Herbert Smith Freehills team was led by corporate partners Barnaby Hinnigan and Gavin Davies and senior associate Caroline Rae. Partner Isaac Zailer advised on tax aspects.

Addleshaw Goddard was the legal adviser to Miller. Perella Weinberg Partners was the financial adviser to Willis and Evercore to Miller.