Hub International Limited (NYSE: HBG and TSX: HBG), a leading North American insurance brokerage headquartered in Chicago, IL, announced today that it has signed a letter of intent to acquire Sun Life Financial Advisory Services Inc., a Canadian mutual fund dealer, in order to merge it's operations with Hub Capital Inc., Hub International's existing mutual fund dealer in Canada.
Hub Capital operates in tandem with Hub Financial Inc., Hub Internationals' Canadian life and financial services operation.
Sun Life Financial Advisory Services Inc., when it is acquired by Hub International, will have over $350 million in assets under management and approximately 158 representatives throughout Canada that provide financial advisory services to individuals and businesses. The transaction will include the mutual fund registrations for the Sun Life Financial Advisory representatives. In addition, Hub Financial will become a preferred distributor for Sun Life Financial branded life insurance products. Hub will provide the brokers sales and support services, along with access to multiple insurance carriers, for a variety of insurance products, helping to expand their product offerings to their customers.
Terri DiFlorio, President, Hub Financial, commented, "Bringing the Sun Life Financial Advisory representatives into our fold measurably improves our reach into the financial services arena in Canada as a mutual fund dealer and broadens our ability to provide financial services to our clients. Because of the breadth of our insurance business, we have the size and scale to offer high-quality, responsive back-office services for our brokers and can extend through this channel a broad offering of insurance products as well."
The acquisition, which is subject to regulatory approval and standard closing conditions, is expected to close by January 1, 2003.
Sun Life Financial Advisory Services, Inc. is a subsidiary of Sun Life Assurance Company of Canada.
Hub International, which provides a broad array of property and casualty, life and health, employee benefits and investment and risk management products and services, has grown rapidly since its formation in 1998 through mergers, acquisitions and organic growth. It has offices located throughout 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, 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. 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.