Marsh announced a definitive agreement to acquire Scotland’s largest independent insurance broker Tuesday, citing its desire to expand its presence in the UK’s emerging shale gas industry.
Central Insurance Services, an Aberdeen-based broker, has been in operation since 1973 and provides broking and risk advisory services to Scotland’s oil and gas sector, among other industries. Its client base is extensive, Marsh said, helping the international broker gain an even larger share of the sector’s business.
“The addition of the team from Central Insurance will enhance our ability to deliver services to companies of all sizes in Scotland, particularly those in the energy sector, further enabling us to support those operating in the UK’s emerging shale gas industry,” said Mark Weil, CEO of Marsh UK & Ireland.
Central Insurance’s managing director, Iain Henry, will take over as Head of Marsh’s operations in Scotland upon closing, which is expected later in 2014’s first quarter.
The deal comes as a report from the Institute of Directors last August predicted an expansion of 74,000 jobs in the shale gas industry, and two-thirds of the UK’s land will be available for companies to license. Up to 150 applications for the land are expected, and roughly 1bn pounds of financial incentives and revenues could be given to communities who accept the controversial practice of fracking.
If Marsh’s best-laid plans come to fruition, many of those new jobs and businesses will turn to Marsh operations for the necessary insurance.
Terms of the deal were not disclosed.
