The scramble for market share at the top end of the broker market is still in full swing, with Marsh & McLennan reportedly close to buying British broker Heath Lambert, the seventh-largest global insurance and reinsurance broker.

A report in the London Daily Telegraph yesterday said Marsh made an approach to Heath Lambert last month and the two companies have signed confidentiality agreements. Heath Lambert is privately owned, and dropped plans to float a year ago as equity markets plummeted.

Describing Heath Lambert as “highly profitable”, the Daily Telegraph report said Marsh wants to expand its UK operations. Talks between Marsh and reinsurance brokers Benfield Group broke down at the last minute earlier this year. Benfield held a successful public float last month.

The report said venture capital firms own about two-thirds of Heath Lambert, and want to realise their investment after the company brought in a 35% profit improvement. Analysts believe Heath Lambert will attract rival suitors, the report said. Willis and Aon are both likely alternative buyers.