Corporate round-up

Marsh to acquire key parts of sub-Saharan African broking business Marsh has reached an agreement to acquire key parts of the sub-Saharan African brokerage business of Alexander Forbes (AF), which it says will serve as a real platform for growth in the region. The business being bought is Alexander Forbes Risk Services (AFRS) operations in South Africa, Botswana and Namibia. The transaction is due to regulatory and other approvals and is expected to complete sometime in November. Marsh said the deal represents a significant step forward in expanding its presence in Africa.hideAs a result of the acquisitions Marsh believes it will have a leading market position in South Africa. Going forward Marsh may purchase further parts of AFRS African business as part of an umbrella agreement with AFRS. 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.” Peter Zaffino, President and CEO of Marsh Inc, said that Marsh recognises 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,” he said. Gras Savoye makes changes at the top French insurance broker Gras Savoye has appointed Patrick Werner as the group's new Chief Executive Officer. He replaces Patrick Lucas who, until the appointment, was both Chairman and the CEO of the company. Mr Lucas will keep the position of Chairman of the board. Mr Werner, 61, is a former chairman of La Banque Postale, the financial arm of La Poste, the French postal services group. He has also served as General Director at Fédération Française des Sociétés d'Assurances, FFSA, France's insurance association. He took over the new job on August 29. Gras Savoye said in an announcement that the changes at the top mark a ‘change of governance’ at the company, with the splitting of the two positions formerly under Mr Lucas' control. The French media has reported that Mr Lucas will at first remain responsible for Gras Savoye's international subsidiaries, and Mr Werner will take care of the company's operational side. The company is part owned by Willis. The broker has an option to purchase full control of Gras Savoye in 2015. Willis develops nuclear power station exclusion zone product Willis has developed a new insurance product to cover business interruption costs for companies with key locations, suppliers or customers situated in the vicinity of a nuclear power station. The cover will respond should any such companies be forced to suspend operations in the event that the plant’s safety is compromised and an exclusion zone is implemented to contain the damage. The cover was developed by Willis Global Markets International (GMI), a division of Willis Ltd, as a response to the earthquake and tsunami that struck Japan in March and caused a meltdown at the Fukushima nuclear power plant. The consequent radiation leak saw the government impose a 20-kilometre exclusion zone around the plant. Manufacturers and other businesses within this zone were forced to close, regardless of whether they had suffered any damage. Businesses may be affected if their own premises, or those of a key supplier or customer, are located inside a nuclear exclusion zone. In these cases they are likely to find that their conventional insurance policies will not cover the impact on their business, because traditional property damage and business interruption policies usually contain a Radioactive Contamination Exclusion Clause. This excludes any damage, denial of access or other consequences arising from nuclear radiation or contamination. The Willis product is designed to respond not only when a nuclear exclusion zone is imposed following an earthquake or other natural catastrophe, but also when the exclusion zone is the result of other events or failures at a nuclear plant. Toby Wemyss, CEO of GMI, said, “The significant business interruption losses in the wake of the Japanese tragedy brought home the importance of protecting your balance sheet against the forced closure of your own premises, or those of your critical suppliers or customers. With over 440 commercial nuclear power reactors operating in 30 countries, exclusion zone risk is a very real threat to business around the world." “We were reminded again of the potential for loss on 23 August, when the earthquake centred near Richmond, Virginia, prompted the declaration of an ‘unusual event’ at seven US nuclear power plants,” he added. Lockton prepares for Ferma Forum by opening Nordic office US-based international brokerage Lockton has opened its first operation in the Nordic region barely five weeks ahead of the eagerly anticipated Ferma Forum in Stockholm October 3-6. The opening of the Norway office represents Lockton's first footsteps into the Nordic region and the broker said that it plans further international expansion in future. The Norway operation is headed by Cato Aamodt, who has more than 25 years of experience in the insurance industry, including 13 years at rival brokerage Marsh. Stephen Reid, COO of Risk Solutions at Lockton in the UK, commented: "Our investment in Cato and the rest of the Associates in Oslo represents a significant step forward for Lockton and we have every confidence in their ability to grow a business in Norway based on the principals that have made Lockton successful during the past 45 years." Lockton said that the Norway team will be focused on professional and financial lines, risk management services and will also have an affinity capability. Willis targets Polish employee benefit and construction sectors with new acquisition Willis Europe, a division of Willis Group Holdings, has acquired 100 per cent of the shares of Polish insurance broker, Brokerskie Centrum Ubezpieczeniowe (BCU AMA) Sp. Zoo. The deal, effective immediately, will further strengthen Willis’ presence in the country, in particular in the burgeoning employee benefits and construction sectors. Terms of the transaction have not been disclosed. Established in Warsaw in 1998, BCU AMA focused on specialty insurance lines, developing a significant book of business providing insurance brokerage services to the rapidly expanding employee benefits and construction industries. Willis Polska, a wholly-owned subsidiary of Willis Europe, has been trading in Poland since 1991 and has 47 employees and three offices in Warsaw, Katowice and Gdańsk. Its latest acquisition will see 12 BCU AMA staff transfer to the Willis office in Warsaw. Commenting on the rationale behind the deal, Jacek Cichy, CEO of Willis Polska, said, “As the Polish economy continues to grow at a rate of around 3.8 per cent, the expansion of the employee benefits and construction markets, along with other industries, will need to be accompanied by robust risk management. By joining with BCU AMA, we now have leading expertise in these lines of business and can help our clients put in place holistic insurance programmes to mitigate their increased exposure to risk. “In addition, BCU AMA’s clients will also benefit from access to a much broader range of services, backed by the vast global resources of Willis Group, in areas like Energy, Marine, Aviation and Financial and Executive risks,” he added.

Corporate round-up

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