Alexander Forbes Insurance to become Marsh Africa

Local insurance company, Alexander Forbes is being acquired by the world’s leading international insurance broker, Marsh, a wholly-owned subsidiary of Marsh & McLennan Companies. The acquisition will see Marsh enter the African market, and grow into sub-Saharan Africa.

According to a report by Business Report, the deal will cost an initial R808.7 million, but may increase to R1.119 billion given operational and strategic performance targets. The deal is to be completed by the end of 2011, and includes not only Alexander Forbes Risk Services operations in South Africa, but the broader network in southern Africa. The deal, though, is subject to regulatory conditions.

The acquisition will be positive for both Alex Forbes and Marsh, as Alex Forbes gets access to the expertise of Marsh, while they colleagues get expanded career opportunities with insurance solutions across the globe. What’s more, Alex Forbes comes with a full local client base as well as an understanding of the African market.

The combined business will be renamed Marsh Africa with current Alex Forbes CEO, Iurie Erwee, to be appointed as the CEO of the combined business in Africa. Current CEO of Marsh South Africa, Brian Blake, will become Vice Chairman of Marsh Africa, reporting to Erwee. The move will benefit the current list of Alex Forbes clients by bringing them even better risk solutions.

Africa offers an opportunity for growth, says Group President Dan Glaser. Alexander Forbes currently services some of South Africa’s largest industrial, commercial and public organisations.

For more information on the deal, see Business Report.