A new era for Marsh

The latest results of HSBC Insurance Brokers will be a justification of the firm’s decision to extend its global operations.

With a global brand and banks across the world, HSBC Insurance Brokers extension into emerging markets were a natural progression.

The decision to extend its global reach would have been made before the recession, and as emerging markets are performing better than the UK following the financial crisis, it seems to be the right decision.

So the business is seemingly in good shape, not lumbered with any significant debt. Marsh has rebranded the business to Marsh Brokers Limited (MBL), in a big decision to reposition itself away from its bank-owned predecessor.

A question for chief executive Martin South, who heads up the new unit, will be whether to push on with the global strategy.

Marsh has sealed a partnership deal with HSBC bank, which represents a great opportunity to pull in business globally – who will deal with that business? MBL? Marsh? Or both?

How much of a rationale was the HSBC bank partnership deal for the takeover and what effect what that have on MBL?

A final decision will have to be taken over staff numbers.

The UK side of the business has 1,273 staff and the question of what happens to them is still unknown.

Marsh will have to make decision over efficiencies and duplication, deciding whether it needs to make redundancies.

Most large takeovers are followed by redundancies – and staff are generally realistic enough to realise this – it’s usually a question of how many go or are moved around the firm.