Hub International purchases two more brokerages and announces employee benefits platform strategyBy The IJ Staff | July 09 2018 01:30PM
Hub International today announced that it has acquired Optimum Group Benefits & Insurance Services Ltd. based in Coquitlam, B.C. and Wm. W. Hammond Insurance Agency Incorporated based in Leamington, Ontario. Terms of the acquisitions were not disclosed.
The company also announced its corporate strategy “to aggressively assemble best-in-class capabilities and entrepreneurial talent across Canada to develop a complete employee benefits solution.”
Seven acquisitions since January 2018
Including the two acquisitions announced today, Hub has acquired seven Canadian employee benefits brokerages since January 2018. Hub says its total acquired 2018 employee benefits commission and fee revenue has now reached almost $20 million. The company intends to continue making further acquisitions in Canada with the goal of growing revenue in this division, through acquisition and organic growth, to $100M by the start of 2021.
Mid-market employee benefits void
“Hub recognized a mid-market employee benefits void in Canada. While mid-sized companies currently have the option of working with a large brokerage for employee benefit solutions, it’s challenging for those brokers to provide the resources necessary to drive value to the mid-market clients,” said Tina Osen, President of Hub International Canada. “Hub’s shared service model enables our customers to retain a relationship with their local broker while gaining access to the tailored insurance solutions of a leading global brokerage.”
“Hub is interested in firms that can bring a new expertise to complement our offerings to aid our customers in attracting and retaining their current and upcoming workforce,” added Mike Barone, President of Employee Benefits at Hub International. “With a ready pipeline of more than 130,000 property & casualty customers, we are not in the business of merely acquiring revenue, but rather are seeking talent and firms who want to be a part of our strategy and share our customer-centric, entrepreneurial culture.”
New Chief Innovation Officer
Hub International also announced that it has appointed Faizal Mitha as Chief Innovation Officer of Hub’s Canadian employee benefits business. Mitha has worked for both major carriers, as well as co-founded an employee benefits insure-tech company.
Driving the industry forward
“My focus is on building a best-in-class employee benefits experience using cutting edge, scalable technology solutions such as ground-breaking artificial intelligence and machine learning that will drive the industry forward,” said Mitha. “By creating national best practices through the talents of our exceptional current and prospective acquisition companies, we’ll continue to provide distinct competitive advantages to our large number of Canadian property & casualty clients and their employees and our existing employee benefit clients.”