Marsh & McLennan Companies’ (MMC) subsidiaries Marsh and Guy Carpenter will merge their respective Latin American facultative reinsurance operations with those of Jardine Lloyd Thompson Group (JLT) into a new entity called Carpenter Marsh Fac Re.
The combined business is expected to be a major facultative reinsurance intermediary powered by strong data capabilities and growing insurance market relationships. Its formation will be subject to regulatory approvals.
Guy Carpenter International CEO James Nash said: “By combining the facultative reinsurance offerings of Marsh and Guy Carpenter with those from JLT we will be able to offer insurers and insurance buyers a more efficient way to access global reinsurance markets.”
Facultative reinsurance, which is considered to be an integral part of many insurance firms’ reinsurance arrangements, is often used to handle their exposure to the accumulation of risk in certain areas, said Guy Carpenter. The MMC subsidiary claims to place more than $1.6bn in facultative reinsurance.
According to Guy Carpenter, facultative reinsurance is frequently used for various complex or higher-value risks for accessing non-local insurance capacity in several Latin American countries due to legal regulations governing insurance placements.
Carpenter Marsh Fac Re will be headed by Andrew Perry, the CEO, who is currently serving as leader of Mercer Marsh Benefits (MMB).
To be based in Florida, Perry will report to Marsh global placement president Dean Klisura and Marsh Latin America and Caribbean (LAC) CEO Ricardo Brockmann.
Juan Carlos Gomez, who is currently serving as leader of Guy Carpenter’s office in Colombia, will be the deputy CEO of Carpenter Marsh Fac Re.
Perry said: “Carpenter Marsh Fac Re will offer an even wider range of cost-effective risk transfer solutions across LAC. I am excited to be leading a team of unrivalled talent that will deliver deeply specialized expertise across virtually every area of insurable risk.”
Earlier this month, MMC completed the acquisition of JLT, a British insurance and reinsurance broker, for $5.6bn. The merger between the two firms will provide advice and solutions for more than $100bn of annual property/casualty insurance and reinsurance premiums written across the globe.