Alexander Forbes to sell its brokerage business to Marsh

ALEXANDER Forbes announced that it has reached an agreement to sell its brokerage business to Marsh , a wholly-owned subsidiary of Marsh & McLennan Companies. This business comprises Alexander Forbes Risk Services (AFRS) and certain local and correspondent operations serviced across sub-Saharan Africa, including Botswana and Namibia. The transaction, which is subject to regulatory and other approvals, is targeted to be completed in the fourth quarter of 2011.

Edward Kieswetter, Group Chief Executive of Alexander Forbes, said that the deal was consistent with Alexander Forbes? growth strategy and would be mutually beneficial.

?Alexander Forbes will gain access to the expertise of the world?s leading international insurance broker, while Marsh will develop their African footprint through our on-the-ground expertise and extensive client relationships.?

Peter Zaffino, President and CEO of Marsh Inc., said: ?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.?

Mr Kieswetter added that the transaction ?cleared the way for Alexander Forbes to focus on its growth strategy which is driven by the desire to enhance our retail strategy; pave the way for our Financial Services business in the rest of Africa; and expand our penetration into the public sector.?

Kieswetter added that the spirit of the transaction is intended to leverage significant growth opportunities for both Alexander Forbes and Marsh. The specific businesses being sold are Alexander Forbes Risk Services Corporate and Commercial, Alexander Forbes iConnect (Pty) Ltd and AF Compensation Technology Administration Services (Pty) Ltd (?AFRS?), and the Risk Services investments of Alexander Forbes AfriNet.