HUB International Limited (NYSE: HBG) (TSX: HBG) announced today that it will continue its penetration of the transportation insurance market by acquiring New Jersey-based Bart Proud Insurance (Proud). The $3 million revenue broker has entered into a definitive purchase agreement with HUB International Pennsylvania (HUB Pennsylvania). The proposed transaction will support HUB International's initiative to expand its transportation insurance specialty focus.
Founded in 1964 by Bart Proud, 63, the Manasquan, New Jersey insurance broker specializes in transportation risk and is a managing general agent for Occidental Fire and Marine.
"We have been familiar with the Bart Proud name for quite a while and have great respect for its operations," said Dale Kaufman, president of HUB International Transportation Insurance Services Inc. (HUB Transportation). "We are particularly enthusiastic about the rapid expansion of our service to the transportation market and to HUB's fast-growing specialty in transportation insurance."
Late last year, HUB announced plans to establish a specialty HUB through the acquisition of Kaufman & Kaufman, based in Salt Lake City. Recently, HUB announced plans to acquire Coburn Insurance Agency, Inc., a trucking insurance specialty brokerage based in Vermont. As a result of these acquisitions, HUB will have one of the nation's largest transportation insurance specialty practices, with an emphasis on trucking.
"HUB International will provide an important platform for growth in the transportation sector, while also expanding our product line to include personal lines, employee benefits and property coverage," said Bart Proud, founder and president of Bart Proud Insurance. "We see great potential for new customer development and expanded cross-selling to existing clients."
Terms of the transaction were not disclosed.
Headquartered in Chicago, IL, HUB International Limited is a leading North American insurance brokerage that provides a broad array of property and casualty, reinsurance, 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 that 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.