In a strategic move to enhance its specialised capabilities, Marsh has announced its intent to acquire Honan Insurance Group, a distinguished insurance broker known for its proficiency in corporate risk, employee benefits, as well as strata and real estate insurance solutions.
This acquisition holds the promise of fortifying Marsh’s expertise particularly in corporate risk and strata insurance, further solidifying its market presence across Australia and New Zealand. While the financial details of this transaction remain undisclosed, the partnership is poised to strengthen Marsh’s standing as a key segment of Marsh McLennan, renowned for its role as an insurance broker and risk advisor offering comprehensive risk management solutions3.
Established in 1964 and headquartered in Melbourne, the Honan Insurance Group boasts an extensive footprint spanning Australia, New Zealand, and Asia. With a steadfast focus on corporate risk advisory, employee benefits, as well as strata and real estate insurance, the firm has distinguished itself by delivering comprehensive guidance to large residential complexes, agents, and property owners in both Australia and New Zealand.
Pending regulatory approvals, the acquisition is projected to conclude later in 2023. Upon finalisation, Andrew Fluitsma, the CEO of Honan, will assume a direct reporting line to Nick Harris, the CEO of Pacific at Marsh. The integration of Honan’s capable management and staff into Marsh’s organisational framework is set to be a cornerstone of this partnership. Notably, the transaction will also involve the participation of TA Associates (TA), a global private equity firm, which currently holds an 80% ownership stake in Honan and serves as the majority shareholder.
In recent years, under the stewardship of TA Associates, Honan Insurance Group has witnessed rapid expansion marked by a series of acquisitions, notable revenue growth, and increased profitability. This strategic acquisition by Marsh aligns with the company’s commitment to expanding its expertise and market reach, positioning itself as a leading force in the insurance and risk management landscape.
Speaking about the announcement, Marsh CEO of Pacific Nick Harris explained, “The addition of Honan’s highly complementary capabilities, particularly in corporate risk and strata insurance, will enable Marsh to deepen the specialist expertise we provide to clients across Australia and New Zealand, and support them in managing the risks they now face. We have the highest regard for the management and team at Honan and, together, we will provide a best-in-class suite of solutions to our clients. We look forward to welcoming Andrew and his team to Marsh.”
Honan CEO Andrew Fluitsma commented, “This transaction is good news for both our clients and colleagues who will benefit from the combination of our experience with Marsh’s global resources and solutions. It is also significant recognition for the hard work and dedication of the entire Honan team, which has helped us create a valuable proposition for clients.
“With the support of TA over the last three years, Honan has undergone a period of accelerated growth, completing several acquisitions and increasing revenue and profitability.”
He added: “I look forward to building on our joint dedication to innovation and excellent client service, while supporting colleagues in their career development, and contributing to their continued success. The senior leadership team at Honan are committed to this exciting next phase of growth within Marsh.”
Source: Fintech Global
