| Industry | Insurance broker |
|---|---|
| Founded | 1845; 180 years ago (1845) |
| Founder | Henry Ward Johnson A. Foster Higgins |
| Defunct | 1997; 28 years ago (1997) |
| Fate | Acquired by Marsh McLennan |
| Headquarters | New York |
| Number of employees | 8,400 |
Johnson & Higgins was one of the largest insurance brokers. In 1997, it was acquired by Marsh McLennan.
History
The company was founded in 1845 in New York as Jones & Johnson by Walter Restored Jones, Jr. and Henry Ward Johnson. In 1854, the company was renamed when A. Foster Higgins replaced Jones who left to do business on his own. By 1900, the company had offices in 8 cities and had 75 employees.
In 1912, the company brokered U.S. portion of the $5.6 million coverage of the Titanic at a nominal rate.
In 1923, it acquired Albert Willcox & Co., establishing itself in the reinsurance market.
In 1964, the company acquired Don Miller Company.
In 1996, the company acquired Corporate Risk PLC, the largest independent insurance broker in Scotland.
In 1997, it was acquired by Marsh McLennan for $1.8 billion. 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.
Legal issues
In 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.
References
- ^ "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.