UPDATE 1-U.S. insurance broker Marsh to buy Australia's Honan

(Updates with Marsh statement on deal, recasts story throughout)

Aug 20 (Reuters) -

U.S. insurance broker Marsh, a unit of Marsh & McLennan, said on Sunday that it would acquire Australia's Honan Insurance Group, it said in a statement on Sunday.

Marsh didn't disclose terms of the acquisition. However Bloomberg News which first reported about the deal said that the transaction could value Honan around A$700 million ($448.70 million).

Marsh said that on completion, Andrew Fluitsma, chief executive officer (CEO) of Honan, will report to Nick Harris, Marsh's CEO of Pacific.

“The addition of Honan’s highly complementary capabilities, particularly in corporate risk and strata insurance, will enable Marsh to deepen the specialist expertise we provide to clients across Australia and New Zealand," Nick Harris, Marsh's CEO, Pacific said in a statement.

Marsh, a unit of Marsh & McLennan, is an insurance broker and risk advisor that serves commercial and individual clients with data-driven risk solutions and advisory services.

($1 = 1.5601 Australian dollars) (Reporting by Bharat Govind Gautam in Bengaluru;Editing by Elaine Hardcastle and Diane Craft)