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Insurance industry

Hub International Expands Presence with Acquisition of Fifth Third Insurance Services

Strategic Insights

— 1 min read

Hub International Ltd., a global insurance brokerage firm, has acquired Fifth Third Insurance Services Inc. for undisclosed terms, expanding its presence in the upper-Midwest region. The acquisition, expected to close in 2002, marks the company's 11th hub brokerage and will significantly increase its penetration in key regions in Michigan. The deal will also add new offices in Indianapolis and Evansville, Indiana, generating over $10 million in annual property and casualty and benefits revenue.

Key Takeaways:

  • Hub International has acquired Fifth Third Insurance Services Inc. for undisclosed terms, expanding its presence in the upper-Midwest region.
  • The acquisition will significantly increase Hub's penetration in several key regions in Michigan and add new offices in Indianapolis and Evansville, Indiana.
  • The deal will generate over $10 million in annual property and casualty and benefits revenue for the company.
  • The acquired agency will be rebranded as Hub International of Indiana Ltd. upon completion of the transaction.
  • The acquisition is part of Hub International's aggressive growth strategy, with the company acquiring several other brokerages in 2002, including Warner Associates Inc. and Trussell companies.
  • Hub International has nine large "hub" brokerages, which provide insurance brokerage services and manage smaller brokerages in their territory.

Statistics:

  • The acquired agency generates about $25 million in annual revenue from property/casualty and employee-benefits lines of business.
  • The new offices in Indianapolis and Evansville, Indiana, will generate over $10 million in annual property and casualty and benefits revenue.
  • Hub International has acquired a total of four brokerages in 2002, including Fifth Third Insurance Services Inc., Warner Associates Inc., Trussell companies, and O'Neil & Co.
  • Hub International's stock was trading at $12.36 a share on the morning of Dec 30, up 0.9% from the previous close.

Sources:

  • A. M. Best via COMTEX, Dec 30, 2002
  • BestWire, Oct 3, 2002
  • BestWire, Sept 5, 2002
  • BestWire, June 18, 2002
  • COMTEX (http://www.comtexnews.com)

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