Marsh Acquires HSBC Insurance Brokers Ltd in GBP 135 Million Deal

Strategic Insights -

Marsh, the world's leading insurance broker and risk adviser, has reached an agreement to acquire HSBC Insurance Brokers Ltd (HIBL) in consideration of GBP 135 million. The acquisition is subject to regulatory approvals and is expected to close in the first quarter of 2010. Concurrently, Marsh has entered into a Preferred Strategic Partnership (PSP) with HSBC, providing access to corporate and private clients of the bank.

Key Takeaways:

  • Marsh will acquire HIBL, a London-headquartered international provider of risk intermediary and risk advisory services, with approximately 1,400 employees.
  • HIBL holds a prominent market position across Asia, with offices in Hong Kong, Mainland China, India, Singapore, South Korea, Taiwan, and Vietnam.
  • The acquisition will provide Marsh with a significant presence in the UK and Middle East markets, and strong market positions in sectors such as Marine and Management Liability.
  • The PSP with HSBC will enable Marsh to leverage the bank's global network and banking relationships to generate new business.
  • Marsh will manage HIBL's specialist business, including Accident, Health, and Contingency, Cargo, Specie, and North American Practices, through a dedicated business unit called Gibbs Hartley Cooper.
  • Clive Bannister, Group Managing Director, Insurance, HSBC Holdings plc, stated that the agreement will improve the breadth and sophistication of HSBC's broking services for customers, while sharpening its strategic focus on the bancassurance model.
  • Alex Moczarski, President of Marsh's International Division, described the acquisition as a complementary fit that will deepen Marsh's global presence in high-growth areas.
  • Alan Cheah, Chief Executive of Marsh Asia, looks forward to welcoming HIBL's team to the Marsh family, aiming to be the pre-eminent insurance broker and risk advisor in Asia.

Statistics:

  • GBP 135 million: the consideration for the acquisition of HIBL.
  • 1,400: the number of employees at HIBL.
  • 1808: the year that Gibbs Hartley Cooper, a venerable independent broker, was founded.
  • 2010: the year in which the acquisition is expected to close.

Sources:

  • "Marsh Acquires HSBC Insurance Brokers Ltd in GBP 135 Million Deal" by China Weekly News, Copyright 2010.
  • VerticalNews.com.