Insurance broker and risk adviser Marsh has reached an agreement to acquire HSBC Insurance Brokers, a wholly owned subsidiary of HSBC Bank.

Under the terms of the agreement, Marsh will acquire HSBC Insurance Brokers in consideration of 135 million pounds – about $232 million, comprising a mixture of Marsh & McLennan Companies, stock and cash.

The transaction, which is subject to all relevant regulatory approvals, is expected to close in the first quarter of 2010.

Concurrent with this transaction, Marsh has entered into a Preferred Strategic Partnership (PSP) with HSBC, one of the world's largest financial institutions, which will provide additional revenue opportunities to the company. Under the terms of the PSP, Marsh will have preferred access to provide insurance broking and risk management services to HSBC's corporate and private clients.

HIBL is a London-headquartered international provider of risk intermediary and risk advisory services with approximately 1,400 employees. It holds a prominent market position across Asia, with offices in Hong Kong, Mainland China, India, Singapore, South Korea, Taiwan and Vietnam. It also has a significant presence across the UK and in the Middle East and enjoys strong market positions in such important sectors as Marine and Management Liability.

"Acquiring HIBL is a great opportunity for Marsh, our clients, our colleagues and for the HIBL team. We are particularly excited by the opportunities available to us through the PSP with HSBC. It will enable us to leverage HSBC's global network and banking relationships to generate new business," said Dan Glaser, Marsh Inc's Chairman and CEO.

"We also see good growth potential in placing third party business generated via HIBL's Accident, Health and Contingency, Cargo, Specie and North American Practices. We will manage this specialist business through a dedicated business unit, called Gibbs Hartley Cooper - reviving the name of the venerable independent broker which can trace its roots back to 1808."

Clive Bannister, Group Managing Director, Insurance, HSBC Holdings plc, said: "The beauty of this agreement is that on the one hand we are improving the breadth and sophistication of HSBC broking services for our customers, while at the same time sharpening our strategic focus on the bancassurance model with emphasis on life, pensions and investments."

"As a leading insurance broker in Asia, HIBL's activities dovetail excellently with our own, from an operational, cultural and geographic standpoint," said Alex Moczarski, President of Marsh's International Division. "This is a strong complementary fit and will deepen our global presence in high growth areas."

"My Asia colleagues and I look forward to welcoming HIBL's team to the Marsh family," added Alan Cheah, Chief Executive of Marsh Asia. "Together, we will be the pre-eminent insurance broker and risk advisor in Asia, with particular strengths in Hong Kong, Mainland China and Singapore."