Hub International Limited (NYSE: HBG and TSX: HBG) announced that Massachusetts-based C.J. McCarthy Insurance Agency, Inc. (McCarthy), one of Hub's retail brokerage units, today purchased for an undisclosed amount of cash the assets of the Trussell Insurance Agency, Inc. of Newburyport, Massachusetts and the Trussell, Glidden and Mahoney Insurance Agency, Inc. of Greenland, New Hampshire.
The acquired companies, specialists in arranging insurance for real estate businesses, employ 10 people in the two offices and earn approximately $1.3 million in annual revenue. Both firms will remain at their current locations.
Phillip Trussell, Director of the Trussell organizations, has been in the insurance industry for approximately 30 years. He will remain the senior executive responsible for the leadership of both companies. Rosemarie Glidden, President of Trussell, Glidden and Mahoney, will continue to supervise that group. Both Mr. Trussell and Ms. Glidden have been named Senior Vice President of McCarthy and will report to Richard Palleschi, McCarthy President.
Speaking of the acquisition, Bruce D. Guthart, President of Hub International's U.S. Operations, said, "This purchase is a fine example of one component of our growth strategy - folding a successful local specialist into a larger regional hub. We are fortunate to have been able to add the Trussell group to McCarthy and the Hub organization."
Cornelius J. McCarthy, McCarthy Chairman, said, "We're all very pleased to have Phil Trussell and Rosemarie Glidden join our team. They are proven successful professionals who will augment our real estate practice, and that will strengthen our impact on the New England middle-market and enhance our carrier relationships."
Mr. Trussell also noted the importance of carrier ties. "Increasing volume with strong carriers is critical in today's tight market. Our clients will benefit not only from the combined market impact of McCarthy and Trussell's business but also from the infrastructure support McCarthy affords us. This is an excellent opportunity to grow the bottom line through retention and new accounts."
Hub International currently has nine large "hub" brokerages, including McCarthy, that have significant market presence in their geographic regions in the U.S. and Canada. Each hub provides insurance brokerage services and manages the various smaller Hub International brokerages in its territory. The hub brokerages are responsible for growth through sales, service and acquisitions, while the head office, located in Chicago, IL, coordinates access to the insurance market, expands the use of best practices among the hubs and manages the acquisition of additional hub operations.
A leading North American brokerage, Hub International has grown rapidly since its formation in 1998 through mergers, acquisitions and organic growth. It provides a broad array of property and casualty, life and health, employee benefits and investment and risk management products and services through offices located in the United States and Canada. Hub International's strategy is to expand its market share in the highly fragmented North American insurance broker industry by acquiring quality brokerages in key geographic regions serving middle-market commercial businesses, to leverage its decentralized approach in order to differentiate its services and to capitalize on its scale to provide broad product offerings to its clients through multiple distribution channels. Additional information on Hub International can be found at its website: www.hubinternational.com.
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. These forward-looking statements 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 a corresponding fluctuation in our premium-based revenue, any loss of services of key executives, industry consolidation, increased competition in the industry, fluctuation in the demand for insurance products 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. 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.