Hub International Limited (NYSE:HBG)(TSX:HBG) today announced the expansion of its Southwest regional operations (HUB Southwest) through the acquisition of the assets of Blanchard Insurance Group ("Blanchard") by Hub's subsidiary, Talbot Agency, Inc. ("Talbot"). Terms of the cash transaction were not announced. Talbot (HUB Southwest) has operations in the states of Colorado, New Mexico and Texas.
Blanchard, headquartered in Grand Junction, CO is a full service commercial agency specializing in construction and bonding with over $2 million in annual commission revenue. The agency will be combining its local expertise with the strength and size that HUB Southwest provides in Colorado. Presently, HUB Southwest has five other locations in the state, generating over $10 million in annual commission revenue.
Eileen Blanchard will continue to oversee operations at the Grand Junction location. No staff changes are planned as part of the acquisition.
Eileen Blanchard commented, "This transaction will allow us to expand choices and resources for our customers. Blanchard will now have access to over 200 additional insurance companies, expanded capacity to insure larger risks, increased risk management tools and access to enhanced expertise and employee benefits services - all while continuing to execute the business strategy that has allowed us to become one of the top service agencies on the Western Slope. We are also looking forward to expanding our Glenwood Springs location. Mike Deer has been a vital part of that community and has built some outstanding insurance relationships that we plan on expanding. This will work especially well integrating with the existing HUB Southwest locations in Avon and Basalt."
Roger Forystek, president of HUB Southwest, stated that they are looking forward to Blanchard joining the team. "We are really pleased to have Eileen on board to provide the type of local leadership we need to grow our business. Our marketing efforts offer substantial opportunity to expand Blanchard's service to existing and new customers, while HUB Southwest will benefit from direct access to a high level of construction and bonding expertise. In addition, Tim Blanchard has done an excellent job of building a leading bond practice on the Western Slope. His knowledge of the bond industry along with his insurance company relationships will increase our bond writing throughout the region."
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.