NU Online News Service, March 17, 12:46 p.m.EST

Marsh & McLennan Agency LLC announced it has acquired ThomasRutherfoord Inc. Financial terms were not released.

New York-based Marsh & McLennan Agency (MMA) is a subsidiaryof insurance broker Marsh Inc., which is owned by Marsh &McLennan Companies.

It was formed in 2008 to address the middle market insuranceagency business as the alternative to the large client businessthat the parent brokerage Marsh deals with. MMA operatesindependent of Marsh. MMA said Rutherfoord, with annual revenue of$81 million, is its largest transaction since November 2009.

In an interview with National Underwriter DavidEslickchairman and chief executive officer of MMA. said the planfor MMA is to make it "a very meaningful player in the middlemarket on a national basis and we are already the 13th largest[insurance agency] on a standalone basis and expect to continue togrow very significantly."

Roanoke, Va.-based Rutherfoord was established in 1916 and is amember of Assurex International, a brokerage network. It has 10offices and 300 employees. The firm provides commercial propertyand casualty insurance, risk management, surety, employee benefits,and personal insurance.

According to its Web site, risk management is a major facet ofits business.

Rutherfoord's top three executives--Thomas D. Rutherfoord Jr.,chairman; Thomas R. Brown, vice-chairman; and George A. "Shad"Steadman III, a Council of Insurance Agents & Brokers boardmember for more than 20 years and chairman in 2008--will continueto lead the regional business.

All of Rutherfoord's employees will remain with the firm andjoin the MMA network, MMA said. The firm will continue to operateunder the Rutherfoord name for the foreseeable future, MMAadded.

"Rutherfoord is an outstanding organization and is regardedamong its peers as one of the top insurance agencies in thecountry; we're excited to add the strength, depth and quality oftheir entire team to our growing national business," said Mr.Eslick. He said the acquired firm's "focus on client relationships,orientation toward teamwork, quality of employees, discipline offinancial performance and market relationships all speak volumesabout the integrity of the entire organization."

Mr. Eslick added that Rutherfoord has "a wealth of specializedexpertise and capabilities and brings us a strong operation in theSoutheast and mid-Atlantic region. That's why we have designatedRutherfoord as our lead brokerage firm in the mid-Atlantic regionand the District of Columbia."

Mr. Rutherfoord in a statement said, "Joining Marsh &McLennan Agency represents an exciting opportunity for all themembers of our firm to build upon the strong foundation we haveforged over the last 30 years."

The merger, he continued, brings a consolidation of talent andresources that "promises to become one of our industry's preeminentnational organizations. Together, we will offer greater resourcesand a broader platform to serve the emerging needs of our clientsas they address the increasingly complex risks associated withoperating in today's dynamic business environment."

In an interview with National Underwriter, Mr. Eslick said theplan for MMA is to make it "a very meaningful player in the middlemarket on a national basis and we are already the 13th largest[insurance agency] on a standalone basis and expect to continue togrow very significantly."

He noted that a year into its strategy for growth, the agency isat $171 million in revenue "and we expect to grow fairlysignificantly."

With the four new partnerships under its belt, he said heexpects the pace of acquisition would continue to play itself outinto the future. MMA's strategy is to find "good regional platformfirms" and then allow the platform firms to make their ownacquisitions.

When asked why these multi-million dollar independent agenciesdecided to forego independence and join MMA, he said theiroverriding focus was to put their agencies in the best position toprovide for their clients and at the same time provide theircolleagues opportunities for growth "with some nice rewards."

The MMA model calls for independent authority for these firms togrow their business while giving them the support and resources tocontinue to grow, said Mr. Eslick.

One issue that has come up often when MMA discusses partneringis assurance that the firms will remain independent, Mr. Eslicknoted. He said they have been assured that the leadership of Marshand the parent company Marsh & McLennan Companies, stronglysupports the development of an independent agency company, evenhaving its own board of directors, and the new partners have foundthat "it is exactly as we told them it would be."