News Release - April 29, 2009

MARSH ESTABLISHES PROTECTED CELL CAPTIVE FACILITIES
IN WASHINGTON, DC, AND ISLE OF MAN

New Companies Offer Cost-Effective Risk-Financing Alternatives for Small,
Mid-Sized businesses, and for Larger Firms to Segregate Retained Risks

NEW YORK, April 29, 2009 – Marsh, the world’s leading insurance broker and risk advisor, has established protected cell captive insurance facilities in Washington, DC, and Isle of Man to serve the needs of small and mid-sized businesses seeking cost-effective risk-financing alternatives, as well as larger firms looking for ways to segregate retained risks associated with joint ventures, strategic alliances, and other special situations. Both facilities have received approval of the regulatory authorities in their respective locations and are accepting business.

Among the fastest growing alternatives to conventional commercial insurance, protected cell captive (PCC) facilities offer benefits similar to those available through group and single-parent captives at significantly reduced start-up and ongoing costs, as well as a shorter licensing time frame. Individual businesses and other entities participating in the PCC are insulated from the loss experience, liabilities, and credit risks of other participants, and consequently avoid potential costs, such as additional premium requirements or capital outlays that could arise in group captive arrangements when other participating firms have poor loss experience or more volatile risk profiles.

“A growing number of our clients are seeking alternatives to the traditional insurance market, both to avoid the challenges associated with market cycles and to be in a better position to control their own destiny,” said Michael Cormier, a managing director of Marsh and global leader of the firm’s Captive Solutions Practice. “These new facilities give small and mid-sized businesses another option with which to meet their risk management needs in a cost-effective manner. They also provide larger firms with a timely opportunity to test the waters of alternative risk financing without the potentially significant upfront investment of time and expenses associated with establishing a single-parent captive.”

Marsh’s new facility in Washington, DC, is Mangrove Insurance Solutions, PCC, and the Isle of Man facility is Mangrove Insurance Solutions PCC Ltd.

Captives are insurance companies formed by one or more corporations, associations, or government entities as formal mechanisms for self-insuring risk. They are regulated by insurance laws in states or countries where they are located and may be used to underwrite risks beyond those of the entities that own them, subject to applicable local regulations. A protected cell captive is a single entity in which individual businesses can purchase units, or cells, to retain and finance their own risk. Legislation governing PCCs enables them to provide legal separation for each cell owner, so that the financial performance, assets, and liabilities of each cell are completely isolated from those of all other cells in the facility.

With nearly 450 employees in 31 captive insurance domiciles worldwide, Marsh’s Captive Solutions Practice currently manages more than 1,100 captive insurance companies. The Practice provides a full range of captive management services and related advisory services, including actuarial, benchmarking, captive assessments, feasibility studies, strategic reviews, and assistance with domicile selection.

Marsh has 24,000 employees and provides advice and transactional capabilities to clients in over 100 countries. Marsh is a unit of Marsh & McLennan Companies, Inc. (MMC), a global professional services firm with more than 54,000 employees and annual revenue exceeding $11 billion. MMC also is the parent company of Guy Carpenter, the risk and reinsurance specialist; Mercer, the provider of HR and related financial advice and services; Oliver Wyman, the management consultancy; and Kroll, the risk consulting firm. MMC’s stock (ticker symbol: MMC) is listed on the New York, Chicago and London stock exchanges. MMC’s Web Site is www.mmc.com. Marsh’s Web site is www.marsh.com.

 

Contact: Al Modugno
(212) 345-2448
alfred.j.modugno@marsh.com