By James Thaler and David Bull

July 21 - (The Insurer) - Howden Group has moved to hire Marsh's Mike Parrish and a significant number of producers and brokers from the intermediary's Miami operation, as the company embarks on a U.S. retail build-out that will include both hiring and M&A, sources familiar with the matter told The Insurer.

The David Howden-led company has approached employees at established retail brokers, initially focusing on Marsh and its recently acquired McGriff arm, just months after the collapse of the intermediary’s planned acquisition of Risk Strategies, multiple broker sources said.

Marsh’s Miami-based zone leader Parrish and several members of his team were expected to resign to join Howden on Monday morning, the sources said.

It is not known how many Marsh employees are set to join Howden at this stage, but multiple sources said dozens had been approached from an overall Miami operation that employs more than 300, including Marsh McLennan Agency $(MMA)$ staff.

In a statement, Marsh likened Howden's move on Monday to a previous hiring spree by the intermediary that led to an out-of-court settlement and an apology from Howden for "unlawful recruitment" from Marsh's sister company Guy Carpenter.

"This is another example of Howden harming the integrity of the market. Previously, their recruitment methods were found to be illegal and they were forced to apologize. We will again vigorously pursue our interests in court," a spokesperson for Marsh said.

"Our focus is on supporting our more than 90,000 colleagues as they deliver our capabilities and services, as well as providing confidence and clarity to our clients in a complex macro environment," they added.

Howden declined to comment.

Parrish is expected to take the position of CEO for Howden in the U.S. to spearhead its retail drive.

Meanwhile, former Brown & Brown and Hays Companies executive Jim Hays is also involved in the nascent venture and is expected to become vice chairman of Howden at the group level.

He brings significant experience of building U.S. retail businesses. The former Aon executive sold Hays Companies, which he founded in 1994, to Brown & Brown in 2018 in a deal worth more than $700 million and in 2009 co-founded Apollo Syndicate Management, including its Lloyd’s Syndicate 1969.

Sources said that Howden has already secured carrier agreements and licences for its U.S. retail build-out and has broker systems up and running ahead of the hiring drive.

Other senior Miami-based Marsh employees expected to join Howden include the broker’s healthcare practice leader Giselle Lugones, along with several of her team.

Parrish and Lugones did not immediately respond to a request for comment.

M&A STRATEGY TO DRIVE GROWTH

Howden is also closing in on multiple retail broker acquisitions in the U.S. as it targets a rapid build-out of its platform.

The twin organic and inorganic U.S. retail strategy is a key development for the UK-based intermediary as it ultimately targets a mooted New York IPO, with larger-scale M&A expected to follow as it benefits from the additional funding flexibility as a public company, the sources said.

One source said that initial funding for the U.S. retail build-out is being bolstered with the support of Abu Dhabi sovereign wealth fund Mubadala, which was linked earlier this year with a $2 billion capital raise by Howden.

Howden’s other institutional backing comes from General Atlantic, Hg Capital and CDPQ.

Mubadala did not immediately respond to a request for comment.

FLUID SITUATION

Sources said that the targeting of Marsh Miami employees by Howden has created a fluid situation in recent days, with management at the Marsh McLennan-owned intermediary making attempts to retain staff.

Howden has also made overtures to employees of McGriff, which Marsh acquired from TIH in a deal that completed in November 2024.

Parrish joined Marsh from Aon in 2021 as part of a team lift that saw at least 40 Aon colleagues join him at Marsh, with multiple sources suggesting that the executive ultimately brought as many as 80 colleagues with him to the intermediary.

Sources said the Parrish-led unit has delivered strong growth in recent years. They added that the decision to leave Marsh has come amid potential tensions between the unit and MMA, as well as the recent acquisition McGriff.

Further details of Howden’s U.S. retail strategy have not been confirmed.

However, multiple senior U.S. retail broker sources have said that following the end of talks to acquire Risk Strategies earlier this year, Howden has allocated a sizeable budget – potentially running into the hundreds of millions of dollars – to spend on building its own platform in the U.S.

This would entail adding as many as 1,000 staff on the ground through M&A and hiring, including from retail brokerages it has existing relationships with as a wholesaler in London.

Sources said the aim is to build a U.S. operation that could potentially double the size of Howden’s business over the coming years from the estimated $1 billion it generates from the U.S. market across its Dual MGA platform, reinsurance, wholesale and binding.

The company is expected to target talent in the U.S. that matches up with its capabilities in London specialty.

PUBLIC AMBITIONS

Securing a U.S. retail platform is key to the company’s expected plan to ultimately go public, with the growth opportunity in this segment of the market likely to be a core element of Howden’s pitch to public investors.

The move into U.S. retail could create disruption within its UK wholesale business if U.S. retailers and wholesalers become reluctant to trade with Howden in the UK if it also owns a U.S.-based competitor.

However, sources said Howden may see a way past this potential obstacle by hiring producers from those U.S. retailers that can bring that business with them. This can then be placed directly into London where necessary, at the same time as inorganically building out with acquisitions of firms that control business.

The active M&A strategy would contrast with some previous attempts by London-based intermediaries to expand into U.S. retail.

The aggressive hiring strategy is likely to be met with a robust response from U.S. intermediaries, based on the recent history of litigation in the U.S. and London broking sectors, sources said.

Parrish himself was the centre of a legal dispute after he resigned from Aon along with dozens of Florida-based staff to join Marsh, leading to a confidential settlement between the companies.