November 16, 2001 by Canadian Underwriter
Broker network consolidator Hub International Ltd. (TSE: HBG) increased net earnings for the third quarter of this year by 71% to $3.2 million compared with $1.9 million made for the same period a year prior. Earnings on a fully diluted basis amounted to 15c a share against 10c a share shown at the end of September 2000. The number of common shares in issue rose to 21.5 million from the 18.8 million in issue a year prior, resulting in modest dilution of the latest earnings gain.
The consolidator’s net earnings for the first nine months of 2001 rose by 26% to $11.1 million (September 2000: $8.8 million) on the back of a 43% rise in revenue over the same period to $159.4 million (September 2000: $111.7 million). Fully diluted earnings for the latest nine-month reporting period clocked in at 57c a share compared with 48c a share made a year prior. Hub attributes the gain in revenue and net earnings for the latest quarterly report to "the positive impact of acquisitions completed during the last 12 months".
As a result of the strong financial performance, Hub has declared a dividend of 7c a share for the third quarter of this year, payable to shareholders registered by December 14. The dividend will be issued on December 30. The group operates in both the Canadian and U.S. property and casualty brokerage insurance markets.