Business & Finance
Thu, January 5, 2012
JOHANNESBURG--([ BUSINESS WIRE ])--Marsh, a wholly-owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), today announced that it has completed its previously agreed acquisition of the brokerage business of Alexander Forbes (AF). This transaction comprises its South African insurance broking operations, Alexander Forbes Risk Services (AFRS) and related ancillary operations, and AFas insurance broking operations in Botswana and Namibia.
"Through focused investment and support, Marsh has made significant achievements in its levels of Black Economic Empowerment. The combined Marsh entity will remain strongly committed to continuous improvement in its BEE performance levels"
Marsh also announced that it has agreed to acquire other Alexander Forbes local operations across sub-Saharan Africa in Malawi, Mozambique, Nigeria, Uganda, and Zambia subject to regulatory and other approvals. These transactions are expected to close in the first quarter of 2012.
This transaction gives Marsh a leading market position in South Africa and significantly expands its presence in some of the most vibrant economies in the sub-Saharan region. In particular, it greatly enhances Marshas position in Africaas major business sectors, including mining and minerals, power, telecommunications, transportation, and construction. It also extends Marshas reach into the dynamic middle market.
David Batchelor, President of Marshas International Division, said: aThe combination of Alexander Forbesa well-established South African operations, its regional network, and respected team together with Marshas existing South African business, global solutions, resources, and placement skills, will bring dramatically enhanced benefits to all our clients. Companies in the rapidly-developing African region are increasingly looking for insurance brokers and risk advisers that can help them both protect their vital assets and grow. This transaction, which is driven by our growth ambitions to be a pan-African leader, gives us a powerful platform to meet these expectations.
aAs we have worked more closely together over the last few months, we have been impressed with the team at Alexander Forbes Risk Services, which deservedly enjoys a strong reputation for excellent client service. My Marsh colleagues and I warmly welcome them.a
Jurie Erwee, who today assumed the responsibilities as CEO of the combined enterprise, now called Marsh Africa, added: aThe whole team at AFRS has been made to feel very welcome by our colleagues at Marsh and we look forward to a rapid integration of the businesses. Together, as we unite our growth ambitions to become the continentas pre-eminent broker and risk adviser, we are committed to bringing the worldas best to Africa.a
On closing the transaction, Marsh retained its Level 3 status in its Broad-Based Black Economic Empowerment (B-BBEE) scorecard rating. aThrough focused investment and support, Marsh has made significant achievements in its levels of Black Economic Empowerment. The combined Marsh entity will remain strongly committed to continuous improvement in its BEE performance levels,a Mr Erwee added.
About Marsh
[ Marsh ], a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 25,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a wholly owned subsidiary of [ Marsh & McLennan Companies ] (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of [ Guy Carpenter ], a global leader in providing risk and reinsurance intermediary services; [ Mercer ], a global leader inhuman resource consulting and related services; and [ Oliver Wyman ], a global leader in management consulting. Follow Marsh on Twitter [ @Marsh_Inc ].