MEDIA RELEASE PR37649
Marsh to Acquire HSBC Insurance Brokers and Enter into Preferred Strategic Partnership with HSBC Bank
HONG KONG, Dec. 18 /PRNewswire-Asia-AsiaNet/ --
Deal will expand presence in key markets; boost client services and solutions; secure preferred access to HSBC
corporate and private clients
Marsh, the world's leading insurance broker and risk adviser, today announced it has reached an agreement to
acquire HSBC Insurance Brokers Ltd (HIBL), a wholly owned subsidiary of HSBC Bank. Under the terms of the
agreement, Marsh will acquire HIBL in consideration of GBP 135 million, comprising a mixture of Marsh &
McLennan Companies, Inc. stock and cash. The transaction, which is subject to all relevant regulatory approvals, is
expected to close in the first quarter of 2010.
Concurrent with this transaction, Marsh has entered into a Preferred Strategic Partnership (PSP) with HSBC,
one of the world's largest financial institutions, which will provide additional revenue opportunities to the company.
Under the terms of the PSP, Marsh will have preferred access to provide insurance broking and risk management
services to HSBC's corporate and private clients.
HIBL is a London-headquartered international provider of risk intermediary and risk advisory services with
approximately 1,400 employees. It holds a prominent market position across Asia, with offices in Hong Kong,
Mainland China, India, Singapore, South Korea, Taiwan and Vietnam. It also has a significant presence across the
UK and in the Middle East and enjoys strong market positions in such important sectors as Marine and
Management Liability.
"Acquiring HIBL is a great opportunity for Marsh, our clients, our colleagues and for the HIBL team. We are
particularly excited by the opportunities available to us through the PSP with HSBC. It will enable us to leverage
HSBC's global network and banking relationships to generate new business," said Dan Glaser, Marsh Inc's
Chairman and CEO.
"We also see good growth potential in placing third party business generated via HIBL's Accident, Health and
Contingency, Cargo, Specie and North American Practices. We will manage this specialist business through a
dedicated business unit, called Gibbs Hartley Cooper - reviving the name of the venerable independent broker
which can trace its roots back to 1808."
Clive Bannister, Group Managing Director, Insurance, HSBC Holdings plc, said: "The beauty of this agreement is
that on the one hand we are improving the breadth and sophistication of HSBC broking services for our customers,
while at the same time sharpening our strategic focus on the bancassurance model with emphasis on life, pensions
and investments."
"As a leading insurance broker in Asia, HIBL's activities dovetail excellently with our own, from an operational,
cultural and geographic standpoint," said Alex Moczarski, President of Marsh's International Division. "This is a
strong complementary fit and will deepen our global presence in high growth areas."
"My Asia colleagues and I look forward to welcoming HIBL's team to the Marsh family," added Alan Cheah, Chief
Executive of Marsh Asia. "Together, we will be the pre-eminent insurance broker and risk advisor in Asia, with
particular strengths in Hong Kong, Mainland China and Singapore."
About Marsh
Marsh, the world's leading insurance broker and risk adviser, 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 of $11 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.
HSBC Insurance Brokers Limited
HSBC Insurance Brokers is one of the largest international insurance broking and risk management
organisations in the world. Founded in 1808 in London as Antony Gibbs & Sons, today the company has offices in
18 countries and territories in Europe, the Asia-Pacific Region, the Middle East and the Americas, and operates on
all international markets and at Lloyd's. HSBC Insurance Brokers placed premiums of over GBP 1 billion at 31
HSBC Holdings plc
HSBC Holdings plc, the parent of the HSBC Group, is headquartered in London. The Group serves customers
worldwide from around 8,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas,
the Middle East and Africa. With assets US$2.422 billion at 31 June 2009, HSBC is one of the world's largest
banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
Contacts:
William Sargent
Tel: +65-8139-7400
Email: william.sargent@marsh.com
SOURCE: Marsh
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