Howden, the London-headquartered insurance broker, has launched a retail broking business in the United States, escalating tensions in an increasingly litigious battle over executive defections and client migrations.
Alongside the announcement, Howden named Jim Hays as vice chairman of its parent company. Hays is best known for founding Hays Group in Minneapolis, which became the 22nd-largest US broker before being acquired by Brown & Brown in 2018.
The timing of the launch coincides with the unfolding of a fierce legal dispute. Marsh USA has initiated proceedings in the Southern District of New York against Parrish and three other former Marsh executives - Giselle Lugones, Robert Lynn, and Julie Layton - accusing them of orchestrating a covert recruitment campaign on Howden’s behalf while still employed at Marsh.
According to court filings, “Parrish and his lieutenants then worked covertly over many months, all while being handsomely compensated by Marsh, to aggressively solicit Marsh’s employees to join them at Howden.” The suit alleges that over 100 Marsh employees were encouraged to resign in a coordinated fashion beginning July 21, with subsequent losses of key clients.
“To date, at least eight major Marsh clients have moved to Howden – resulting in millions of dollars in lost revenue,” the claim states.
Howden has declined to comment publicly. It is not the first time the company has faced scrutiny over large-scale hiring. In 2023, its reinsurance arm Howden Tiger settled a legal dispute with Guy Carpenter after more than 30 staff - including senior European leaders - joined the firm. In that matter, Howden conceded in a statement to the High Court that it and some executives had “engaged in unlawful recruitment from Guy Carpenter,” adding that they “regret the actions they have taken.”
Two of the individuals named in that case - Elliot Richardson and Massimo Reina - have reappeared in other litigation involving the firm. In one incident, court documents alleged that Reina extended a €500,000 signing bonus, with further incentives exceeding €1 million, to entice a colleague to follow him to Howden during an off-site meeting.
A judge presiding over that matter remarked that “The Howden companies have a ‘track record’ of arranging team moves,” and noted that the firm had not contested the latest allegations prior to an expedited hearing.
Marsh is not the only party pursuing claims. Aon has launched its own legal action, accusing Howden of orchestrating departures from its operations in Brazil and Europe, with ten former Aon employees named in a High Court claim lodged in London last year. That case, which also centres on the potential misuse of client data and breaches of non-solicitation agreements, remains ongoing.
In April, Marsh filed an additional lawsuit against Aon, alleging that the hiring of Robert McDonough, its former head of surety, was a deliberate move to poach talent and divert client relationships. The complaint noted that McDonough, once at Aon, disclosed internal recruitment plans he had received while still at Marsh.
Beyond the courtroom, the backdrop to the controversy is Howden’s stalled attempt to acquire Risk Strategies, a US brokerage valued at $10 billion. The acquisition would have provided Howden with a significant foothold in the American market and a likely springboard to public listing. Instead, the business was purchased by Brown & Brown, prompting Howden to focus on a talent-led market entry strategy.
For the year ending September 30, 2024, Howden reported adjusted revenue of £3.01 billion, a 23 per cent increase. Its reinsurance business grew by 30 per cent over the same period. The company now derives about a quarter of its total revenue from the US, a figure expected to rise with the retail arm’s development.
Founded in 1994 by David Howden, the firm has grown from a boutique operation to one of the world’s largest independent brokers. Its managing general agent business, Dual, has had a presence in the US for over a decade, and the 2022 acquisition of reinsurance intermediary TigerRisk further expanded its American reach.
Still, as lawsuits multiply and rivalries deepen, the company's expansion efforts face the headwinds of regulatory scrutiny and reputational risk.
As Dean Klisura, chief executive of Guy Carpenter, put it during a prior dispute: “It’s not right that others can disregard these standards and treat breaking the law as just another cost of doing business. The court record shows that Howden senior executives acted in blatant disregard for the law by knowingly planning and implementing an unlawful conspiracy.”
The question now is whether Howden’s growth ambitions can outpace the growing volume of litigation trailing in their wake.
