JOHANNESBURG--(BUSINESS WIRE)--Marsh, a wholly-owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), today announced that it has reached an agreement to acquire the brokerage business of Alexander Forbes (AF). This business comprises Alexander Forbes Risk Services (AFRS) and certain local and correspondent operations serviced across sub-Saharan Africa, including Botswana and Namibia. The transaction is subject to regulatory and other approvals.
Following completion of this transaction, which is targeted for the fourth quarter of 2011, Marsh will have taken a significant step forward in expanding its presence in Africa. In particular, it will have a leading market position in South Africa. The transaction combines Alexander Forbes’ well-established South African operations, broader network, and respected enterprise with Marsh’s global solutions, resources, and placement capabilities to enhance Marsh’s competitive position in key markets.
“Marsh recognizes the tremendous potential of the African continent as a major market for insurance and risk management services. In Alexander Forbes Risk Services, we will acquire a highly regarded firm, greatly strengthening our immediate presence and providing us with a powerful platform to deliver value to the fast-developing sub-Saharan region,” said Peter Zaffino, President and CEO of Marsh Inc.
David Batchelor, CEO of Marsh’s Europe, Middle East and Africa region, said: “This transaction is positive news for our clients, colleagues and the risk and insurance industry across Africa. Our clients will benefit from the deep expertise brought together in the combined business; our colleagues will enjoy expanded career opportunities; and our global services and solutions will give greater options to companies of all sizes across the region.”
Jurie Erwee, CEO of AFRS, will be appointed CEO of the combined business in Africa, to be called Marsh Africa, and will report to Mr Batchelor. Brian Blake, CEO of Marsh South Africa, will be appointed Vice Chairman of Marsh Africa with specific responsibility for developing African business outside South Africa, and will report to Mr Erwee.
Mr Erwee said: “By aligning the local strengths of Alexander Forbes with Marsh’s global resources, we are bringing the world’s best to Africa. Marsh Africa will provide a broader offering to our clients and ensure that we can provide them with the risk solutions best suited to their needs. Both Alexander Forbes and Marsh have, through focused investment and support, achieved Level 3 status in our respective Broad-Based Black Economic Empowerment (B-BBEE) scorecard ratings. As a combined enterprise we are committed to continuous improvement in our BEE performance levels.”
Dan Glaser, Group President and Chief Operating Officer of Marsh & McLennan Companies said: “Africa is a region of increasing growth opportunities and focus for Marsh & McLennan Companies. We are delighted to welcome Alexander Forbes’ respected management team and colleagues who have a well-deserved reputation for excellent client relationships. Together, we will bring the best of Marsh & McLennan Companies’ global capabilities to their impressive range of clients, which includes some of South Africa’s most prominent industrial, commercial and public organisations.”
About Marsh
Marsh, the world’s leading insurance broker and risk advisor, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has around 25,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Follow Marsh on Twitter @Marsh_Inc.
About Marsh & McLennan Companies
Marsh & McLennan Companies is a global professional services firm providing advice and solutions in the areas of risk, strategy and human capital. It is the parent company of a number of the world's leading risk experts and specialty consultants, including Marsh, the insurance broker and risk advisor; Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; and Oliver Wyman, the management consultancy. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies provides analysis, advice and transactional capabilities to clients in more than 100 countries. Its stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. Marsh & McLennan Companies' website address is http://www.mmc.com