Hub International Limited (NYSE: HBG) and (TSX: HBG) announced that on September 1, 2002 Kaye Insurance Associates, Inc. (KIA), the largest retail brokerage unit of Hub's New York subsidiary, Kaye Group Inc. (KGI), purchased the assets of C. S. Nenner, Inc., a Bordentown, New Jersey insurance agency, for an undisclosed amount consisting of cash and Hub International stock.
Nenner, a specialist in transportation and warehousing coverage for trucking businesses, has 15 employees and earned $3 million in revenues in 2001. The firm was founded in 1992 and has been managed by three principals, Howard Nenner, Chairman; Richard Minerva, President and Gregory Kroeger, Secretary/Treasurer, all of whom will remain with the agency, which will stay in Bordentown and operate as a division of KIA. Mr. Nenner will become a First Vice President at KIA, reporting to KIA President, Damian Testa. Messrs. Minerva and Kroeger, both of whom were in the transportation industry prior to joining Nenner, will also become First Vice Presidents at KIA.
Speaking of the acquisition, Bruce D. Guthart, President and CEO of Kaye and President of Hub International's U.S. Operations said, "This is an excellent example of our growth strategy to expand our market breadth and reach by enhancing our major `hub' operations, such as Kaye, with successful specialty agencies and brokerages, run by committed, professional managers."
Mr. Testa noted that Nenner's focus on the critical transportation industry adds another area of expertise to Hub's broad offering of specialty risk management disciplines for commercial clients and prospects. "The excellent business Nenner's professionals have built is a significant addition to our portfolio of niche capabilities," Mr. Testa said. "I welcome Howard Nenner, his partners and staff to the KIA organization and look forward to working with them. We expect to help them expand their business and strengthen relationships within the important segment of middle-market clients and prospects they serve."
Mr. Nenner, commenting on the partnership with KIA, said that Hub's business model holds strong appeal for his organization. "Our firm has done very well, but we'd gotten to the point where adding scale required not only a reliable source of funding but also the enhanced infrastructure support that our growth will require. Hub offers both while allowing us the autonomy to continue operating our business in the way that has historically worked for us and our clients. It's a great formula."
Headquartered in Chicago, IL, Hub International is a leading North American brokerage that 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 U.S. insurance broker industry by acquiring quality brokerages in key geographic regions serving middle-market commercial businesses, leverage its decentralized approach in order to differentiate its services and 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, 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.