HUB International has purchased Morneau Shepell's benefits consulting practice for $70 million. The acquired business provides tailored benefits solutions to organizations, including actuarial services and integrated data analytics.

In a statement released March 2, Tina Osen, President of Hub International Canada said, “Hub has been bullish on its strategy to provide comprehensive end-to-end benefits services that address the challenges Canadian employers are facing to achieve their recruiting, retention and cost management goals…With Morneau Shepell's benefits consulting practice, Hub will deliver highly differentiated services across all five lines of our business – property and casualty, employee benefits, retirement, risk services and personal lines – to clients large and small, in-country and cross border."

In a separate statement also released March 2, Morneau Shepell said “the exited business represents approximately three per cent of overall Morneau Shepell revenue and has margins slightly above the aggregate margins of the overall business.”

Morneau Shepell focuses on growth strategy

Stephen Liptrap, President and Chief Executive Officer, explained that Morneau Shepell decided to divest itself of its benefits consulting practice following a comprehensive review. “We are very focused on our growth strategy, which includes being clear market leaders in the businesses in which we operate, owning the total well-being space, accelerating growth through geographic expansion and leveraging technology to deliver a seamless experience for our clients and their employees. The benefits consulting business is a strong, profitable asset and a great fit for Hub… The benefits consulting business is core for them, and in their hands has more potential upside and opportunity to grow."

Nigel Branker, President, Health and Productivity Solutions and Executive Vice President, Morneau Shepell, added that the deal “marks the beginning of a partnership between Morneau Shepell and Hub – Hub choosing Morneau Shepell as a key partner in delivering Internet-based Cognitive Behavioural Therapy (iCBT) services and employee well-being services and Morneau Shepell selecting Hub as a preferred provider for benefits consulting services."

In 2018, Hub launched its strategy to expand in the Canadian employee benefits market. Since then it has acquired 28 Canadian brokerages and has grown its Employee Benefits practice to more than 20 offices, over 400 staff and in excess of $100M in revenue and $1.5B in premium, says the company.

Best-in-class employee benefits strategy

"Hub's investment in Morneau Shepell's benefits consulting practice rounds out our capabilities in the large and jumbo employer market, while providing additional capabilities, ranging from association products to actuarial services, that can be scaled to small- and mid-market clients," said Mike Barone, President of Employee Benefits at Hub. "This is in line with our number one goal to provide a best-in-class employee benefits experience to clients regardless of size."

JP Girard, Morneau Shepell's Health & Benefits Consulting Canadian Practice Leader has joined Hub as Executive Vice President, Benefits Consulting – National Accounts and has been appointed to Hub’s Canadian Employee Benefits leadership team.