in Ayling, Barrios & Cia SA, Argentina's largest insurance broker, bolstering its growing Latin American operations.

The New York-based insurance broker also said it set up a joint venture with an Israeli insurance broker. Marsh & McLennan Inc. has a broking and captive management subisidiary in Bermuda.

Ayling will be merged with Marsh & McLennan's Argentina unit and the name will be changed to Ayling Marsh & McLennan. Robert Ayling, senior partner of Ayling, will become chief executive of the Buenos Aires-based operation.

The purchase comes two months after Marsh & McLennan formed a partnership with Mexico's Carsa Consultores Agente de Seguros to provide insurance and reinsurance services there.

"This acquisition and merger is another step in our strategy of building an increasingly strong client-service presence in Latin America,'' Robert Solomon, managing director, said in a statement.

Terms of the agreement were not disclosed.

In Israel, Marsh & McLennan -- one of the world's largest insurance brokerages -- said it formed a joint venture with Loewenthal Sagiv Ben Sur under which Loewenthal will provide insurance services to Marsh's clients that do business in that country.