Hub International Limited (NYSE:HBG) and (TSX:HBG) today announced that Hub International of California, Inc., has purchased for an undisclosed amount of cash the assets of Payne & Company Insurance Brokers, Inc. (Payne).
Payne, founded by John Payne in 1973, earns approximately $2 million in revenue from middle market commercial business, benefits, and personal insurance. They will relocate to Hub's Los Angeles office, where Mr. Payne, owner and President of the acquired firm, will serve as a Senior Vice President, reporting to Frank C. Hayes, President and CEO of Hub International of California, Inc.
Martin P. Hughes, Hub Chairman and Chief Executive Officer, said the Payne acquisition, the fold-in of a local firm by a regional hub, further advanced the Company's growth strategy. He continued, "This acquisition is a significant step in expanding in an important territory. It broadens our client base and also augments our strength with insurance carriers in the region. We're pleased to have John Payne join us and help us grow our West Coast operations."
Mr. Payne said, "Hub is an exciting growth story, both on the West Coast and nationally. We're happy to be part of a dynamic organization with the resources of many talented people. It will help us serve our clients better by giving us access to a wide range of additional products, services and carriers."
Hub International's thirteen large "hub" brokerages 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, IL, Hub International 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 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.