Johnson & Higgins was one of the largest insurance brokers. In 1997, it was acquired by Marsh McLennan.
| Industry | Insurance broker |
|---|---|
| Founded | 1845 |
| Founder | Henry Ward Johnson A. Foster Higgins |
| Defunct | 1997 |
| Fate | Acquired by Marsh McLennan |
| Headquarters | New York |
Number of employees | 8,400 |
History
editThe company was founded in 1845 in New York as Jones & Johnson by Walter Restored Jones, Jr. and Henry Ward Johnson.[1] In 1854, the company was renamed when A. Foster Higgins replaced Jones who left to do business on his own.[1] By 1900, the company had offices in 8 cities and had 75 employees.[1]
In 1912, the company brokered U.S. portion of the $5.6 million coverage of the Titanic at a nominal rate.[1]
In 1923, it acquired Albert Willcox & Co., establishing itself in the reinsurance market.[1]
In 1964, the company acquired Don Miller Company.[2]
In 1996, the company acquired Corporate Risk PLC, the largest independent insurance broker in Scotland.[3]
In 1997, it was acquired by Marsh McLennan for $1.8 billion.[4][5] Of the sale proceeds, $1.01 billion went to J&H's active directors and shareholding managing principals, $500 million was earmarked for 600 key J&H employees, and $297 million was paid to 40 retired directors; however, the retired directors sued, alleging that they were shortchanged.[6][7]
Legal issues
editIn 1999, the company agreed to pay $28 million to settle an age discrimination lawsuit filed in 1993 resulting from a company policy that mandated that members of its board of directors retire at age 62.[8][9][10]
References
edit- ^ a b c d e "Johnson & Higgins". Encyclopedia.com.
- ^ "Johnson & Higgins And Don Miller Co". The New York Times. January 7, 1964.
- ^ "J&H PURCHASES BIG BROKER IN SCOTLAND". The Journal of Commerce. March 4, 1996.
- ^ Lipin, Steven; Scism, Leslie (March 12, 1997). "Marsh to Buy Rival Johnson & Higgins". The Wall Street Journal.
- ^ "Marsh to buy rival broker". CNN. March 12, 1997.
- ^ Mcleod, Douglas (December 7, 1997). "J&H RETIREES CHARGE FRAUD IN SALE". Business Insurance. Crain Communications.
- ^ "Directors Squabble Over How to Carve Up Firm's Spoils". The New York Times. December 27, 1997.
- ^ "JOHNSON AND HIGGINS TO PAY $28 MILLION IN SETTLEMENT OF AGE DISCRIMINATION LAWSUIT" (Press release). Equal Employment Opportunity Commission. July 29, 1999.
- ^ "Johnson & Higgins Settles Age Bias Case". Los Angeles Times. Reuters. July 30, 1999.
- ^ Rapoport, Michael (July 30, 1999). "Insurance Firm Agrees to Pay Former Directors $28 Million". The Wall Street Journal.