Marsh announced that it has completed its previously agreed acquisition of HSBC Insurance Brokers Limited (HIBL), a wholly owned subsidiary of HSBC Bank plc, in the UK and other key markets in Asia and the Middle East.
The deal was first announced last December [See IJ website – https://www.insurancejournal.com/news/international/2009/12/18/106084.htm.] The purchase price was £135 million [$205.4 million]. Concurrently with the acquisition, Marsh “entered into an agreement as a Preferred Strategic Partner to HSBC,” which, the bulletin indicated, would provide “Marsh with the unique opportunity to provide insurance broking and risk management services to corporate and private clients referred to Marsh by HSBC.
“During a transitional phase, scheduled to last through the end of the calendar year, HIBL will operate under the name Marsh Brokers Limited (MBL) in the UK and certain other geographies.
“MBL is an international provider of risk intermediary and risk advisory services headquartered in London. Ranked among the top brokers in the UK, MBL enjoys strong market positions in both established and developing markets, including Education, Marine and Specie.”
Martin South, CEO of Marsh UK, commented: “Our acquisition of HSBC Insurance Brokers extends the breadth of Marsh’s operations in several high growth markets. UK plc faces many challenges, marked by an increasingly complex and demanding risk environment. I know that the team joining Marsh today share our commitment to delivering the products, solutions and service that our clients, and those of HSBC, need to thrive and grow.”
He also singled out MBL’s “reputation for professionalism and client service,” as a notable strength. In addition South noted that the new alignment will also revive “the venerable London insurance brand of Gibbs Hartley Cooper.”
South also indicated: “We are particularly excited by the opportunity to be a Preferred Strategic Partner to HSBC, one of the world’s largest financial institutions. We look forward to working with HSBC and providing its referred clients with the best risk management advice and insurance solutions.”
Marsh added that the acquisition was “funded with cash,” and has “been completed in all geographies with the exception of Abu Dhabi and Saudi Arabia, where Marsh expects to close in the second quarter of 2010. The acquired revenue of MBL’s operations is approximately £130 million on an annual basis.”
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