Marsh & McLennan’s $US5.6 billion ($7.8 billion) acquisition of rival global broker JLT has taken effect after a final court order, with Australia a key market for the combined business.
The expanded group spans more than 130 countries and provides advice and solutions for more than $US100 billion ($139 billion) of annual property/casualty insurance and reinsurance premiums placed globally.
“Today marks the beginning of a new era with Marsh & McLennan and JLT coming together,” President and CEO Dan Glaser said last night.
“This is a combination of strength and strength, and the primary focus is growth – in talent capabilities, revenue and earnings.”
Scott Leney, previously Marsh Pacific CEO, has taken up the role of Head of Australia, which now ranks as the third-largest country for Marsh.
Mr Leney has three decades of experience in the industry and is responsible for the strategy of Marsh in Australia, leading more than 1800 colleagues to deliver risk advice and insurance solutions, the company says.
Former JLT CEO for Australia and New Zealand Nick Harris has taken over the Marsh Pacific CEO role. He is one of many JLT senior executives to assume leadership positions under the post-merger arrangements.
Global CEO Dominic Burke has become Marsh & McLennan Vice Chairman and a member of the executive committee, as well as Chairman of the new Marsh-JLT specialty business.
The deal also combines the two companies’ reinsurance broking operations, with JLT Re Executive Chairman Ross Howard becoming Vice Chairman of the expanded Guy Carpenter division, led by Peter Hearn.
Mr Glaser said last year that the acquisition of London-based JLT would make the group stronger in the UK and Australia and add to Marsh’s position in growth areas such as Asia and Latin America.
“Australia is a ‘top six’ country for Marsh and McLennan,” he told a conference call. “JLT is quite large and significant there too, so I love the idea of how that combines.”
Marsh had to temper its ambitions in global aerospace broking after the European Commission raised competitions concerns, leading to the sale of JLT’s aerospace business to Gallagher for about £190 million ($345 million).
The company last year flagged potential job cuts globally in areas including finance, human resources, IT, operations legal and administration, but said “natural attrition” would play a role.