Hub International Limited (NYSE:HBG)(TSX:HBG), one of North America's largest insurance brokers, today announced that its Canadian life and financial services wholesale brokerage, Hub Financial, Inc., has acquired TILCO Financial Services Ltd. of Victoria, British Columbia. Terms of the cash transaction were not disclosed.
TILCO has been a major client of Toronto-based Hub Financial since Tilly Enriquez founded TILCO in 1993, and essentially all TILCO business is placed through Hub Financial on a wholesale basis. The acquisition increases Hub's broker representatives and provides a platform for further expansion of Hub Financial's wholesale brokerage operations on Vancouver Island. TILCO operations, which generated revenue of approximately US$415,000 in 2003, will report to Terri DiFlorio, president of Hub Financial.
"TILCO will solidify our distribution base on Vancouver Island and will create substantial opportunity for additional revenue growth," DiFlorio said. "This transaction makes great sense for both parties, especially in light of the long and close working relationship between our organizations. We welcome Tilly and the TILCO financial services representatives to our family and look forward to a successful partnership with them. They are a quality group of advisors and we're proud to have them as part of our team."
"After many years of close partnership with Hub Financial, all of us look forward to working as an integral part of this solid organization," Enriquez said. Enriquez will continue with the firm as its marketing director on Vancouver Island.
Hub International's 14 regional hub brokerages in the United States and Canada serve as the platforms for expansion through both internal growth and acquisition of smaller brokerages. Fold-in acquisitions provide expanded geographic presence or industry expertise in their regions, in addition to expanding the revenue base and earnings potential of the regional hub. Under Hub International's acquisition strategy, the parent company acquires larger regional brokerages to create regional hubs, while the hubs identify and implement fold-in opportunities. Hub International's goal is to complete its footprint across the United States through the acquisition of approximately seven more regional hubs, with emphasis in the Southeast and Southwest.
Headquartered in Chicago, IL, Hub International Limited is a leading North American insurance brokerage that provides a broad array of property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the United States and Canada.
This press release may contain forward-looking statements which reflect our current views with respect to future events and financial performance. These forward-looking statements relate, among other things, to our plans and objectives for future operations and are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. These uncertainties and other factors include, but are not limited to, risks associated with implementing our business strategies, identifying and consummating acquisitions, integrating acquired brokerages, attaining greater market share, developing and implementing effective information technology systems, recruiting and retaining qualified employees, fluctuations in the premiums charged by insurance companies with corresponding fluctuations in our premium-based revenue, any loss of services of key executives, industry consolidation, increased competition in the industry, fluctuations in the demand for insurance products, exchange rates, resolution of regulatory issues, including those related to compensation arrangements with insurance companies, the actual costs of resolution of contingent liabilities and the passage of new legislation subjecting our business to regulation in jurisdictions where we operate. We caution readers not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Additional information regarding these risks and other factors that could cause Hub International's actual results to differ materially from our expectations is contained in the company's filings with the Securities and Exchange Commission and the Canadian securities commissions. Except as otherwise required by federal securities laws, Hub International undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.