Marsh & McLennan Agency LLC (MMA), a subsidiary of
Marsh and the 12th largest insurance broker in the United States, has acquired Vézina Assurances Inc., an independent brokerage based in Montreal, Quebec.
This is a strategic transaction for the broker, as it represents MMA’s entrance into Canada. In expanding northwards, MMA hopes to mirror the success it’s achieved in the U.S. as a platform for the middle market.
“We launched MMA in the US for a number of reasons, including the fact that it was a highly fragmented market and we thought there was an opportunity to bring together high-quality brokerage firms and to leverage Marsh’s resources and capabilities to have a unique model to compete in the marketplace,” said David Eslick, chairman and CEO of MMA.
Eslick asserts that similar conditions currently exist in the Canadian marketplace, allowing MMA to fill a long-standing void.
“Our view is that there are about 3,000 independent brokerage firms in Canada, and Marsh has a very strong position there, predominately in the upper middle market to the upper part of the market,” he said. “So we think this presents another good opportunity to build a strong position in the middle market.”
MMA targeted Vézina, a full-service brokerage offering P&C insurance products to mid-sized businesses in Quebec, because it felt that the Montreal firm’s “strong leadership team, mix of business, and emphasis on customer-centric service make it an ideal match for us to expand our strategy into Canada.”
The broker believes that the benefits of MMA’s presence in Canada will cascade down to brokers and other insurance professionals as well.
“We think that we provide a unique opportunity for professionals in the business because we embrace the entrepreneurial DNA and culture of these high-quality independent agencies, but we can provide them with resources and capabilities from the largest broker in the world,” said Eslick.
