Marsh announced that it has reached a definitive agreement to acquire a majority stake in Panamanian insurance broker and advisor Semusa, Marsh’s long-standing local correspondent broker.
Terms of the transaction were not disclosed. It is expected to close in the third quarter of 2014.
Marsh’s bulletin said the transaction would strengthen its “leadership position in the Central America and Caribbean region and follows the acquisition of Franco & Acra Tecniseguros in the Dominican Republic last year.
“Operating under the name Marsh Semusa, the combined entity will bring together the long-established and highly-regarded operations of Semusa, with the global footprint, solutions, and placement capabilities of Marsh to provide an enhanced service to clients of all sizes in Panama.
Semusa has been Marsh’s local correspondent for 15 years. Upon closing, Samuel Urrutia, President of Semusa Group, will become Chairman of the Board of Marsh Semusa, reporting to Ricardo Brockmann, CEO of Marsh Latin America and Caribbean. Emanuel Abadia, currently CEO of Semusa, will become CEO of Marsh Semusa, reporting to Jose Vergara, Head of Marsh Central America and the Caribbean.
Peter Zaffino, President and CEO of Marsh LLC, said: “Panama is one of the fastest growing economies in the world, and I am excited that Marsh’s first office in Central America will be located in one of its most dynamic business environments. The country has seen significant expansion across the financial services, infrastructure, construction, energy, logistics and transportation sectors. We look forward to offering companies in Panama the full range of our global and regional capabilities.”
Urrutia noted that strong economic growth in recent years “has increased the demand for a higher level of risk advice from companies looking to expand.” He added that by “further cementing our relationship with Marsh, we will strengthen and enhance the capabilities that Semusa has built up over many years and present the most comprehensive risk and insurance offering in the local market.”
David Batchelor, President of Marsh’s International Division, added: “This transaction consolidates the successful relationship Marsh has had with Semusa since 1999. We look forward to working with their respected local management team and colleagues to further broaden their already deep client relationships.”