Marsh in Talks to Buy Part of HSBC’s Insurance Arm
Thursday, November 26, 2009 20:54One of the owld’s largest insurance brokers, Marsh & McLennan, is exploring a deal to buy part of HSBC’s insurance business.
MMC, which has a market capitalisation of almost $12bn and is listed in New York, is thought to be closing in on HSBC Insurance Brokers, which analysts have valued at between ￡150m and ￡200m.
HSBC Insurance Brokers is ranked as the UK’s ninth largest broker and has offices worldwide. The business finds insurance protection for commercial customers which it directs to underwriters in the Lloyd’s of London insurance market. Industry insiders say HSBC Insurance Brokers I no longer viewed as a core part of the bank’s strategy. They say that talks between the two parties are currently at an advanced stage and that the business represents a good fit for MMC’s broking business Marsh, which is keen to grow its global business.
Any deal would dilute HSBC’s involvement with insurance. The bank recently put its motor insurance business HSBC Insurance into run-off after failing to agree a deal to sell the division to Insurance Australian Group.
Earlier this month, Brian Duperreault, MMC chief executive, said the insurance broker sould announce several acquisiti9ons, including a couple by the end of December. After reporting the comopany’s third-quarter earnings, he said that the economic situation actually helps the company as it opens up more opportunities.
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