Though the financial details have not ben disclosed Marsh has informed that as part of the transaction, which has been approved by the IRDAI, it has acquired the share from local partners, including the entire shareholding of the Rampart Trust
Earlier, other global major insurance brokers including AON, Willis Tower Watson and Arthur J. Gallagher & Co. have already raised their stakes in the Indian joint ventures to 100 per cent
Mumbai:
Marsh, the world’s largest insurance broker and risk advisor, has increased its shareholding in its India joint venture (JV) Marsh India Insurance Brokers Pvt. Ltd. from 49% to 92%.
Though, the financial details have not ben disclosed, Marsh has informed that as part of the transaction, which has been approved by the IRDAI, it has acquired the share from local partners, including the entire shareholding of the Rampart Trust.
Foreign insurance intermediaries are now allowed to have 100 per cent stake in their India operations.
Marsh India, the largest insurance broker has 18 branches across India, employing more than 1,300 professionals, and servicing over 5,500 corporate clients across all business sectors.
Earlier, other global major insurance brokers including AON, Willis Tower Watson and Arthur J. Gallagher & Co. have already raised their stakes in the Indian joint ventures to 100 per cent.
Alex Moczarski, chairman Marsh McLennan International and chairman of the board of Marsh India, said,“The decision to raise our stake in Marsh India reflects the success we have had, and our ongoing commitment, in bringing the very best in global expertise to support clients in India.”
This is an exciting investment for Marsh that will further our leadership position in one of the world’s most dynamic markets. For our clients, growing supply chain challenges, a heightened cyber threat, and the impacts of the pandemic mean that they need the very best risk and insurance advice to help them navigate an increasingly complex risk landscape, he said,
Formed in 2003 as a joint venture between Marsh International Holdings Inc. and India-based Rampart Trust,Marsh India was one of the first foreign insurance brokers to be registered as a composite broker with the Indian insurance regulator, the Insurance Regulatory and Development Authority (IRDAI).
David Jacob, CEO of Marsh’s Asia region, which includes India, said: “The increased stake in Marsh India will further our leadership across the Asia region. As the local economy is forecast to continue its high-growth trajectory, we will now further develop our local client offering especially in sectors providing significant opportunity such as healthcare, infrastructure and construction, technology, and the sharing economy.”
Sanjay Kedia, country head and CEO of Marsh India. “This decision reflects Marsh’s confidence and commitment to helping companies across India meet the challenges they face as they recover from the pandemic and thrive.”
Cyril Amarchand Mangaldas acted as legal counsel to Marsh International Holdings, Inc. (Marsh International) on purchase of 43.01 per cent of the shareholding of Marsh India Insurance Brokers Private Limited.
The Transaction team was led by Indranath Bishnu, Partner; with support from Niyati Dholakia, Consultant; and Ayushi Agrawal, Associate.
Other party in the Transaction includes Talwar Thakore & Associates, which acted as legal counsel to Rampart Trust.
In February 2020, the Department of Promotion of Industry and Internal Trade amended the foreign direct investment (“FDI”) policy to allow 100 per cent FDI in insurance intermediaries.