New York Group to Buy Alexander Forbes Brokerage Business

September 5 - A leading business listed on the New York stock exchange has signed a deal with Alexander Forbes to acquire the South African insurance giant's brokerage business.

Marsh, which is a wholly owned subsidiary of Marsh & McLennan Companies, will acquire Alexander Forbes Risk Services, as well as other similar operations in Botswana and Namibia belonging to the group.

This purchase guarantees Marsh's entrance into the African market, with a strong position in South Africa already.

The President and Chief Executive Officer of Marsh Inc., Peter Zaffino said: "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."

The Chief Executive Officer of Marsh's Europe, Middle East and Africa region, David Batchelor noted that this transaction was positive news for the group's clients, colleagues and the risk and insurance industry in Africa.

He said that Marsh's clients benefit from the "deep expertise" brought together in the combined business as its colleagues will enjoy expanded career opportunities and its global services and solutions will offer greater options to companies of all sizes across the region.

Marsh Africa

The current CEO of Alexander Forbes Risk Services, Juri Erwee has been promoted to become the CEO of the new Marsh Africa.

"By aligning the local strengths of Alexander Forbes with Marsh's global resource, we are bringing the world's best to Africa," said Erwee. "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."

He said that both Alexander Forbes and Marsh have, through focused development and support, achieved Level 3 status in their B-BBEE scorecard ratings.

"As a combined enterprise, we are committed to continuous improvement in our BEE performance levels," he said.