Marsh Inc.'s much-awaited takeover of International Advisory Services (IAS) will enhance its captive management operations, but reduce the choice of companies available to clients.

That is according to David Ezekiel, founder and CEO of IAS, who will become the managing director and chairman of the newly-combined entity, following the announced acquisition on Friday, as reported in The Royal Gazette.

The deal, which was finally concluded after the best part of year, sees Marsh take over the Island's largest independent manager of captive and third-party insurance companies after the rumour of the sale first broke last month. Terms of the transaction were not disclosed.

"Looking at it objectively, I think it will in one way create a higher quality unit, but at the same time it will remove one choice from the market," said Mr. Ezekiel.

"So I think the industry as a whole will be fine, but buyers will have one less substantial choice in the market, however most of the clients that have come to us have come because of our track record, so I think overall here in Bermuda it will create a large physical presence for a captive manager."

Marsh is currently the biggest captive management company in Bermuda, managing more than 1,100 captives headquartered in 31 countries worldwide, while IAS manages more than 150 captives, mostly on the Island.

The move will further strengthen Marsh's position as a top player in the global captive management industry. Captive insurance companies are owned by businesses, associations, or groups of businesses as formal mechanisms for self-insuring, funding and managing risks.

"IAS is a well-managed company that represents an excellent fit with our business - both from a strategic perspective and culturally with its longstanding reputation for excellent client service," said Dan Glaser, chairman and CEO of Marsh.

"This combination reflects Marsh's commitment to continue to invest in our core businesses around the world and to remain at the forefront of our industry in offering a full spectrum of solutions to clients' risk management needs."

IAS manages more than 150 captives, mostly on the Island, and Mr. Ezekiel and his executive vice-president and chief operating officer David Pickering will join the leadership team of Marsh's global captive solutions practice, which is led globally by Michael Cormier and includes Jill Husbands in Bermuda, and other representatives from across the world.

Mr. Ezekiel said: "I'm thrilled to be joining forces with Brian Duperreault, Dan Glaser, and the team at Marsh and equally pleased to have David Pickering and the rest of the IAS team as part of the combined operation. I am excited about the deal and looking forward to the combination - it has been a long time in the works and I think given the respective capabilities of both firms, the combination will be pretty powerful.

"Ever since IAS began operations, we have strived to offer the best service platform for our clients and we have maintained that commitment even as the challenges confronting clients have grown increasingly complex. Now, as part of Marsh, we can offer clients an entire portfolio of risk solutions to address the wide range of challenges they face today.

"One of the big attractions for us was being able to retain this global reach for our clients who are becoming more and more global in their outlook."

IAS has 108 employees at its various operations, which include its headquarters in Church Street, Hamilton, as well as units in Barbados, Ireland and Vermont, but Mr. Ezekiel said a number of "attritions and additions" could be made as the two companies are merged, with a combined staffbase of around 200 to start with.

"We work in a team structure and the idea is certainly not to make any immediate changes, but all the time with additions and attritions we will be looking to mould the teams from the two respective divisions together," he said.

Mr. Ezekiel said that IAS employees will now be part of a world class organisation whose employees have the opportunity to develop their careers both within captive management and beyond that to the full range of risk services provided by Marsh.

"Captive use has continued to expand in all areas of the world," said Mr. Cormier. "Bermuda remains a leader in providing innovative risk retention solutions to clients with complex risks.

"The combination of Marsh and IAS will bring together an unparalleled team of professionals who share a common focus and commitment to client service excellence."