Johnson & Higgins

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.[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

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.[8][9][10]