Hi-Alta maintains acquisition spree

Western Canada-based broker network Hi-Alta Capital Inc. (TSE: HIA) reported a 35% increase in net income to $465.5 million for the 2000 financial year compared with 1990’s $345.3 million. This equals earnings of 429 a share for 2000 (1999: 347) which rose at a more sedate pace of 24% year-on-year due to an increase in the number of common outstanding shares in issue.

Annual premium volume handled by the broker network’s 31 operations housed under its wholly owned subsidiary Western Insurance Network Inc. climbed by 39% to 125 million (1999: $90 million) which resulted in gross revenue of $19.7 million compared with $15.7 million reported for the year prior. Hi-Alta’s move during June of last year into the selling of investment products provided a significant boost to premium and revenue volume, notes president Scott Tannas. “By the end of RRSP season in February 2001, the network had gathered in excess of $100 million of investments in the form of agency bank deposits, segregated funds and mutual funds from its client base.”

In the year ahead the broker network will focus on further acquisitional growth with emphasis on expanding its financial services product mix, Tannis says. The company recently acquired a life insurance product developer Financial Growth Inc., which operates markets in Alberta, Saskatchewan and Manitoba. Other recent acquisitions include a significant equity stake in investment dealer Jennings Capital Inc. and an Alberta-based general insurance agency Bashaw Agencies. “Much of the past year was devoted to honing the efficiencies of our network’s infrastructure and systems…We have structured the organization for accelerated success in the future and have begun implementing our plan for the next stage of growth and development,” Tannis adds.