Apr
8
HSBC Sells Brokerage Unit to Marsh
By Michael | Published April 08, 2010
Marsh & McLennan Co. Inc., one of the world’s largest insurance brokerages and risk management companies, has announced the completion of a deal which sees the company acquire HSBC Insurance Brokers Ltd (HIBL), a wholly owned subsidiary of HSBC Bank PLC.
Marsh, which announced its intentions in December 2009, is estimated to have paid somewhere in the region of US$ 205 million for HSBC’s brokerage unit. The purchase of HIBL will see Marsh taking possession of approximately 30 new international offices, located throughout Europe, Asia, and the Middle East, in addition to the retention of more than 1,400 employees across those locations; approximately 1000 of these employees are based in the United Kingdom.
While HIBL is only the ninth largest insurance broker in the UK, it is able to diversify the range of products which Marsh is currently offering in the country; which is Marsh’s second largest market behind the USA. The purchase means that Marsh will now be able to offer HIBL’s range of specialty insurance products, including education, marine and specie policies.
The purchase of HIBL now makes Marsh one of the largest international insurance brokers in Hong Kong, often seen as a cornerstone of the Asian insurance market.
In addition to the purchase of HSBC’s insurance broking arm, Marsh also entered into a preferred strategic partnership agreement with the bank. This agreement will see Marsh offering insurance and risk management services to HSBC’s clients.
Dan Glaser, CEO of Marsh Inc, said of the deal “not only does the bank become our client for both insurance and reinsurance, but we are working together in a joint effort to provide more broking services to HSBC’s clients, both in private and commercial banking.”
Final details, and closure of the deal, are expected during the second quarter of 2010 in Abu Dhabi and Saudi Arabia.
Companies Mentioned
Marsh & McLennan Co. Inc (MMN) is one of the largest insurance brokerages and risk management companies in the world. Operating in over 100 companies worldwide they are able to help clients identify risks and take actions to prevent negative outcomes
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