Hub International Limited (NYSE:HBG)(TSX:HBG), a leading North American insurance brokerage headquartered in Chicago, announced today that its New England insurance brokerage hub, C.J. McCarthy Insurance Agency, Inc. (McCarthy), has hired David DiPerna as Executive Vice President and a member of the unit's executive committee. He will direct McCarthy's Risk Management/Alternative Financing Division, reporting to McCarthy President, Richard J. Palleschi.
Mr. DiPerna, who has been in the insurance industry over 30 years, earned an MBA from Boston College and also holds an Associate in Risk Management (ARM) degree from the Insurance Institute of America. He started his career as a casualty underwriter, and during the past 25 years he's been a Boston-area broker, serving part of that time as a Senior Vice President for two global insurance brokers, most recently the Boston office of Aon Corporation.
Risk Management and Alternative Financing involve numerous techniques, examples of which are the use of high deductibles and self-insurance supported by the utilization of loss control engineering and actuarial services. Such mechanisms have traditionally been employed by only the largest organizations. But, according to Mr. DiPerna, mid-size companies, confronted with escalating insurance rates and severely restricted coverage availability can also benefit from adopting Risk Management strategies.
"The problem," Mr. DiPerna added, "is that the largest national brokers must devote their best efforts to assisting their biggest accounts, and the middle market client gets compromised in the process, on both talent and resources. The smaller local agents frequently do not have the expertise to offer effective alternative programs."
Mr. DiPerna continued, "As a regional specialist, we can offer our middle-market insureds and prospects exactly what they need to transition from traditional insurance arrangements -- the focused attention of top-flight experienced people in-house and the ability to select, implement and monitor the appropriate support services. Although our primary mission is to deliver Risk Management services to mid-size clients, we will also selectively target larger businesses."
In announcing the appointment, Mr. Palleschi said that adding experienced specialists such as Mr. DiPerna was part of Hub International's strategy to grow organically by deepening and broadening the regional hubs' services to businesses in their territories. "Dave's long career and strong reputation in our area is a great benefit to our business. He has a loyal following among insureds, and his network of contacts and former colleagues will strengthen our recruitment activities." In addition to its efforts to grow internally, Hub made seven acquisitions during the second half of 2002.
Hub International currently has 11 large "hub" brokerages 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 other Hub International offices in its territory. The hub brokerages are responsible for growth through sales, service and fold-in acquisitions. The various hub offices report to the head office, located in Chicago, which, in addition to monitoring the activity of each hub, retains responsibility for identifying and acquiring additional hub brokerages.
Headquartered in Chicago, Hub International is a leading North American insurance 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, 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 brokerage industry by acquiring quality firms in key geographic regions that focus on servicing middle-market commercial businesses. In addition, Hub plans to leverage its decentralized approach, differentiate its service, and capitalize on its scale to provide broader product offerings to its clients through multiple distribution channels.