Marsh to Acquire Brokerage Business of Alexander Forbes

Marsh Inc., a wholly-owned subsidiary of Marsh & McLennan, has reached an agreement to acquire the brokerage business of Alexander Forbes. 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, says Marsh.

Following completion of this transaction, which is targeted for the fourth quarter of 2011, Marsh says it will have taken a significant step forward in expanding its presence in Africa. In particular, Marsh says 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.

“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,” says Peter Zaffino, president and CEO of Marsh Inc.

Jurie Erwee, CEO of AFRS, will be appointed CEO of the combined business in Africa, to be called Marsh Africa, and will report to David Batchelor, CEO of Marsh’s Europe, Middle East and Africa region. 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. He will report to Erwee, says Marsh.