Honan Insurance Group Executive Chairman Damien Honan has welcomed the $700 million sale of the business his father founded in 1964. 

As reported by insuranceNEWS.com.au, global broking giant Marsh has agreed to acquire Melbourne-headquartered Honan, as it aims to strengthen its local mid-market presence.  

Mr Honan bought out his father Geoffrey, who died last year aged 92, in the 1990s. The brokerage has expanded rapidly since, particularly after private equity firm TA Associates bought into the business in 2020.   

Marsh’s acquisition of 100% of the outstanding share capital of Honan includes the 80% holding of TA Associates. 

Terms of the deal have not been disclosed but insuranceNEWS.com.au understands a figure of $700 million, reported by other media, is accurate. The deal is expected to complete later this year subject to regulatory approvals.  

Mr Honan says he is proud of the company’s journey as an independent broker, but the acquisition is a win-win. 

“It’s great what we’ve been able to achieve but everything evolves and nothing stays the same in business,” he said. “The biggest always wants to own the best, and that’s what’s happened here. 

“It’s exciting for our staff to learn from a truly global organisation, but we can also show Marsh how to do mid-market business. We’re pretty good at it.” 

Mr Honan, who will remain with the business in an advisory capacity, believes the Honan name will be retained for now. 

“At this stage that is the intention and Marsh have worked that way with some of their US acquisitions, but in five years, who knows. I don’t think Marsh will be changing their name to Honan.” 

A Marsh spokesperson told insuranceNEWS.com.au that the deal “signals Marsh’s aspiration to be a market leader in the mid-market segment”.  

The spokesperson says decisions on branding, and any transition arrangements, will be “worked through” as part of integration plans.   

“Honan has more than 400 employees servicing the mid-market in this region. On completion, this will bring Marsh total colleagues in the region to over 2500,” the spokesperson said.  

Honan operates across Australia, New Zealand, and Asia. It serves more than 30,000 clients from offices in Sydney, Brisbane, Perth, Adelaide, Darwin, Newcastle, Auckland, Singapore, and Kuala Lumpur.  

As well as corporate risk advisory and employee benefits, Honan specialises in strata and real estate insurance services.   

On completion of the deal, Honan CEO Andrew Fluitsma will report to Marsh CEO Pacific Nick Harris.   

Mr Harris says the management team and employees of Honan will strengthen Marsh’s corporate offering.  

Mr Fluitsma says the transaction is good news for Honan’s clients “who will benefit from the combination of our experience with Marsh’s global resources and solutions”.   

“With the support of TA over the last three years, Honan has undergone a period of accelerated growth, completing several acquisitions and increasing revenue and profitability,” he said.  

“The senior leadership team at Honan are committed to this exciting next phase of growth within Marsh.”