Marsh & McLennan Agency CEO Touts Acquisition That Makes It 13th Largest in U.S.

Marsh & McLennan Agency purchased the brokerage firm Thomas Rutherfoord Inc. in a move the Marsh Inc. subsidiary says will make it the 13th-largest insurance agency in the United States.

The acquisition furthers Marsh & McLennan LLC's pursuit of the business of midsize companies. Marsh formed the subsidiary in October 2008 to compete for middle-market businesses. Terms of the transaction were not disclosed.

The deal for 94-year-old Rutherfoord is Marsh & McLennan Agency's fourth and largest to date, Chairman Chief Executive Officer David Eslick told BestWire. Eslick hailed Alexandria, Va.-based Rutherfoord as "one of the top quality firms in the entire industry" and said he intends to keep the Rutherfoord's executives, staff and offices intact. Rutherfoord will serve as Marsh & McLennan Agency's platform for the mid-Atlantic region, he said.

"It brings to the table for us all the key capabilities and services we need," he said. "We're embracing the entire organization."

Rutherfoord has annual revenues of $81 million, more than 300 employees and 10 offices from Philadelphia to the Gulf Coast region. The combined MMA will have annual revenues of $171 million. Rutherfoord Chairman Thomas D. Rutherfoord Jr. and Vice Chairmen Thomas R. Brown and George A. "Shad" Steadman III will continue to lead Rutherfoord. All employees will also remain, Marsh & McLennan Agency said.

"Joining Marsh & McLennan Agency represents an exciting opportunity for all the members of our firm to build upon the strong foundation we have forged over the last 30 years. Our future is bright because this consolidation of talent and resources promises to become one of our industry's preeminent national organizations," Thomas D. Rutherfoord Jr. said in a statement.

Marsh & McLennan Agency intends to offer commercial property/casualty, personal lines and employee benefits to clients across the United States. The company said it intends to double or triple the size of initial partners within five years, primarily through acquisitions (BestWire, Nov. 12, 2010). Eslick, previously president, chairman and CEO of the brokerage firm USI Holdings Corp., joined Marsh in January 2009 with a track record of building national insurance agencies.

"We have very nice momentum, and we're talking to a very nice group of quality organizations," Eslick said.

Shares Marsh & McLennan Cos. (NYSE: MMC) were trading at $24.60 on March 17, up 0.45% from the previous close.

(By Sean P. Carr, Washington Correspondent: [email protected])