Willis Group Holdings announced today that Glencairn, theLondon-based arm of Hilb Rogal & Hobbs, and Willis plan tocreate a new third-party wholesale brokerage business.

The planned launch of the new wholesaler–Faber & Dumas–is aresult of the $2.1 billion Willis-HRH merger deal announced inJune, which is expected to be completed in the fourth quarter.

Willis said Glencairn will continue to trade as a separately-runthird-party London wholesale broker, that it will be run byexisting management, and that a separate business in the name ofFaber & Dumas will be created to distinguish the new wholesaleplatform.

According to a statement released by Willis, “the Faber &Dumas name has a long and proud history dating back to 1928, whenWillis was the leading London-based third-party wholesalebroker.”

“As a company, we are excited and committed to growing allavailable distribution channels,” Willis President GrahameMillwater said in a press statement. “The Faber & Dumasplatform will allow us to include other business from Willis'existing third-party portfolio and other HRH wholesalebusiness.”

The Glencairn operation will focus on growing its revenue frominternational and U.S. third-party intermediaries, direct clientsand global ceding companies, Willis noted. It will continue toprovide specialist wholesale services in a number of areas,including property, accident and health, energy, construction,political risk, cargo and casualty lines, Willis added.

Steve Hearn, chairman and chief executive officer of Glencairn,will be responsible for the day-to-day management and future growthof its wholesale business.

“In the current market climate, this gives Glencairn's staff andclients a unique opportunity,” according to Mr. Hearn. “We willmaintain our ability to trade independently, but at the same timewe gain valuable support and infrastructure to significantlyenhance our service, brand and client base.”

Outlining Willis Group's plans for the United Kingdom, WillisLtd. Chairman and CEO David Margrett, who will be chairman of Faber& Dumas, said that “the London wholesale broking market isfragmented, and we see a huge opportunity for consolidation bycreating a financially secure, well-managed business for thebenefit of clients, brokers and markets.”

Willis officially exited the U.S. wholesale business in February2006, when it sold its only wholesale unit, Stewart Smith Group, toAmerican Wholesale Insurance Group. At the time, Willis Chair andCEO Joseph Plumeri said the sale is in keeping with the firm'semphasis to focus on its retail brokerage operations, and its plansto strengthen retail relationships, while divesting non-coreoperations.

The move came in the wake of then New York Attorney GeneralEliot Spitzer's investigations of contingency fees and conflicts ofinterest in the insurance brokerage sector. At the time, merger andacquisition advisors flagged the Stewart Smith sale as the start ofa trend that saw other retailers divorce themselves from theirwholesale brokerage units.

HRH, which has acquired and maintained several wholesaleoperations in recent years, acquired Glencairn Group in December2006, expanding both its presence in London and its wholesale andreinsurance capabilities.