Marsh Chairman and CEO Dan Glaser said the deal was a great fit for the firm and good news for HSBC which has also signed a preferred strategic partnership deal which will enable Marsh to offer broking and risk management services to the bank’s personal and corporate clients.

In a conference call following the announcement Mr Glaser said the group would be looking for organic growth allied with disciplined acquisitions and hinted there could be a further announcement prior to the end of the year.

Under the terms of the agreement, Marsh will acquire HIBL in consideration of £135 million, comprising a mixture of Marsh & McLennan Companies, Inc. stock and cash. The transaction, which is subject to all relevant regulatory approvals, is expected to close in the first quarter of 2010.

“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,” added Mr Glaser.

“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."

Mr Glaser said it was far too early to make any statement on the impact on staffing numbers of the move but added that the acquisition brought with it significant expertise in areas such as marine, energy, and financial institution coverages.

He added the PSP was the key benefit of the deal for HSBC Group.

“They are one of the world’s biggest and most well capitalised banks so they did not do it for the money,” he added. “For HSBC the PSP will deliver access to the Marsh expertise for its personal and corporate clients.”