Marsh has announced it has reached an agreement to acquire HSBC Insurance Brokers Ltd (HIBL) in a transaction that is expected to close in Q1 2010, subject to regulatory approval.

Under the terms of the agreement Marsh will acquire HIBL, a wholly owned subsidiary of HSBC Bank, for a consideration of £135m, comprising Marsh & McLennan Companies stock and cash.

Concurrently, Marsh has entered into a preferred strategic partnership (PSP) with HSBC, giving Marsh preferred access to provide insurance broking and risk management services to HSBC’s corporate and private clients.

“Acquiring HIBL is a great opportunity for Marsh, our clients, our colleagues and for the HIBL team,” said Dan Glaser, Marsh chairman and CEO.

“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.”

Clive Bannister, group managing director, Insurance, at HSBC Holdings said: “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.”

Glaser also said Marsh sees 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,” he said.

London-headquartered HIBL has approximately 1,400 employees in 30 offices in the UK, Middle East and Asia.

Both Marsh and HIBL both hold prominent market positions in several regions offering growth potential, including the UAE, Saudi Arabia, Qatar, China, Hong Kong, India, Singapore, South Korea and Taiwan.