2010-04-01 07:30
Consolidates Leadership Position in Asia
HONG KONG, April 1 /PRNewswire-Asia/ -- Marsh, the world's leading insurance broker and risk advisor, today completed its previously agreed acquisition of HSBC Insurance Brokers Limited (HIBL), a wholly owned subsidiary of HSBC Bank plc.
On 18 December last year, Marsh announced that it would acquire HIBL for a price of GBP135 million. Concurrent with this transaction, Marsh has also entered into an agreement as Preferred Strategic Partner to HSBC in the UK and certain other Markets. This provides Marsh with the unique opportunity to provide insurance broking and risk management services to corporate and private clients referred to Marsh by HSBC.
Completion of the acquisition is subject to different regulatory and approval processes. In Asia, Marsh has acquired and renamed the HIBL companies in Hong Kong, Singapore and Korea. As part of the transition process, HIBL colleagues in those countries will initially continue to be employed by those companies until local integration is completed. In Taiwan, Marsh has signed an agreement to transfer the business and colleagues to its existing operation, effective today. The integrations in Mainland China and Vietnam with Marsh's local operations will be finalised shortly.
The acquisition, which was funded with cash, will complete in all geographies in the second quarter of 2010. The acquired revenue of HIBL's operation is approximately GBP130 million on an annual basis.
Combining the operations of Marsh and HIBL consolidates Marsh as the undisputed leader in risk advisory and insurance broking services in Asia, with particular strength in Hong Kong, Mainland China and Singapore.
"Our acquisition of HSBC Insurance Brokers is very positive news for our clients and colleagues and a clear demonstration that Marsh is in growth mode," said Mr Alan Cheah, Region Head - Asia for Marsh. "Asia faces many challenges, marked by an increasingly complex and maturing 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.
"The HIBL team has an excellent reputation for professionalism and client service and they will extend and broaden our already market-leading skills base. My Asia colleagues and I warmly welcome them to Marsh.
"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," Mr Cheah added.
About Marsh
Marsh has over 23,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies (MMC), a global professional services firm with approximately 52,000 employees and annual revenue exceeding $10 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Kroll, the risk consulting firm; Mercer, the provider of HR and related financial advice and services; and Oliver Wyman, the management consultancy. MMC's stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC's Web Site is http://www.mmc.com . Marsh's Web site is http://www.marsh.com .
SOURCE Marsh