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9. Alexander Forbes Ltd.

Article Excerpt
Byline: Sarah Veysey

Against the backdrop of controversy in the global insurance brokerage industry, South African broker Alexander Forbes Ltd. has concentrated on internal issues over the past year, such as shoring up its balance sheet, according to its chief executive.

But looking to the future, the turmoil created by the investigations of New York Attorney General Eliot Spitzer and others could provide growth opportunities for midsize brokers like Alexander Forbes, he said.

In an effort to guard against the abuses detailed in Mr. Spitzer's lawsuit, more buyers are seeking to use multiple brokers, and that gives midsize brokers a chance to compete for business rarely seen a year ago, said Rael Gordon, group chief executive of Alexander Forbes.

Those opportunities to win a slice of large account business are already arising and more will likely follow, he said.

Any added business, though, has not yet had much impact on the brokerage's results.

While the group's revenues grew modestly last year, they were dampened by the effect of the weak U.S. dollar and the softening of the insurance market, Mr. Gordon said.

The broker, whose fiscal year ends March 31, said that gross revenues for the year to March 31 were 4.70 billion rand ($757.2 million), a 3.6% increase in its...

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