marsh feature
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SA Mag - Issue 23 - MARSH FEATURETRANSCRIPT
FEATUR
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M A R S H
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Alexander Forbes acquisition builds Marsh platform in Africa
Brian Blake, Vice Chairman of Marsh Africa, tells South
Africa Magazine how the firm’s acquisition of Alexander
Forbes’ brokerage business has expanded its African presence
and will help it realise the “tremendous potential of the
African continent”. By Ian Armitage
I n January insurance broker Marsh greatly expanded its presence in Africa by completing the
acquisition of Alexander Forbes Risk Services.
The deal, which was announced in August, includes the acquisition of Alexander Forbes’ South African brokerage operations, its risk services arm and its insurance brokerage operations in Botswana and Namibia.
Marsh said it also would acquire Alexander Forbes’ local interests in Malawi, Mozambique, Nigeria, Uganda and Zambia, during the fi rst quarter 2012, subject to compliance and regulatory process.
“Combining these businesses considerably enhances our position in the African market,” says Brian Blake, vice chairman of Marsh Africa with specifi c responsibility for developing African business outside South Africa.
“Marsh recognises the tremendous potential of the African continent as a major market for insurance and risk management services. Alexander Forbes is a highly regarded fi rm, which greatly strengthens our immediate presence. We now have a powerful platform to deliver value to the fast-developing sub-Saharan region.”
“While we were satisfi ed with what we had achieved in the South African market to date, it was clear that if we were going
Marsh FEATURE
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to build a leading business in Africa — as Marsh has in other geographies — we would require a quantum leap. For Marsh, Alexander Forbes was a perfect cultural fi t: it enjoyed a well respected brand, a strong business across segments and territories and a very solid regional network.”
The move is “positive news for clients, colleagues and the risk and insurance industry across Africa,” Blake, the former CEO of Marsh South Africa, adds, explaining that Marsh Africa will
provide a “broader offering” to clients coupled with strong bench strength of professional capability.
“Clients benefi t from the huge level of expertise brought together in the combined business. Additionally, our global services
and solutions will give a wider range of solutions to business across the region.
“By aligning the local strengths of Alexander Forbes with Marsh’s global resources, we are bringing the world’s best to Africa,” Blake says.
He says Africa was an international market where Marsh lacked the correct degree of presence.
Marsh sees itself as a ‘key player’ on the continent with demand increasing for specialist risk management and brokerage services in sectors such as mining, telecommunications, fi nancial services and energy, he explains.
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Marsh FEATURE
Clients benefit
from the huge level
of expertise brought together
in the combined business
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Marsh FEATURE
“Our core business is insurance broking and risk advisory services,” Blake says. “We also see more opportunities for Marsh’s private equity mergers and acquisition practice, focusing on risk, insurance, lender and vendor due diligence, especially at a time when Africa is experiencing signifi cant focus as an investment destination.”
Marsh is the world’s leading risk and insurance services fi rm; it provides analysis, advice and transactional capabilities to clients in over 100 countries.
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The company returned to South Africa in 1999 when Marsh South Africa was established through a joint venture between Marsh Inc. and First Bowring Insurance Brokers, now First Link Insurance Brokers.
It hasn’t looked back.“With the business environment constantly evolving in South Africa, we went from strength to strength,” says Blake.
“We’ve had great success in South Africa,” says Blake. “And with the Alexander Forbes acquisition we are effectively positioning ourselves as a leading insurance force in the marketplace.”
And the opportunities are plenty. “Over recent years we have seen significant
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Marsh FEATURE
opportunity coming out of the sub-Saharan region and Africa generally,” says Blake. “There has been significant Chinese investment, while the big mining houses have also been expanding. Africa is certainly a focal point for investors. And, of course, Africa’s consumer market presents an exciting growth opportunity.
“Africa lacks support infrastructure, however, which creates opportunities too – we have seen a lot of investment in this area.
“Marsh can support clients as they seek to capitalise on this.”
Blake says Marsh in Africa is a business transformed, excited by the future.
“Over the last five to ten years we’ve seen a level of innovation we haven’t seen previously in terms of product development and service delivery. Further, the business model has changed from one that was based on broking or transferring risk for our clients through a traditional market place to one that is more rounded, where we look at issues of risk and risk mitigation before we look at issues of risk transfer,” he explains. “We are today providing a more robust service, rather than a pure intermediary service to clients.
“Innovation will continue and we are seeing developments more specific to our region, which also open up
exciting opportunities,” says Blake. “Micro insurance is one such example. Africa has a large population – 160 million in Nigeria, for example – with a need for risk transfer, at a relatively basic level. Micro insurance can provide that.” END
With the business
environment constantly evolving in
South Africa, we went from
strength to strength
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