Hub credits acquistions, Canadian dollar for revenue growth

Hub International Limited (NYSE:HBG) (TSX:HBG) is crediting its acquisitions strategy in part for 2006 1Q revenue growth of 12% – from US$119.2 million to US$134.1 million.
“We are off to a solid start in 2006, with measurable progress on all fronts,” Hub chairman and CEO Martin P. Hughes said in a press release. “Revenue is up, net earnings are stronger, acquisitions are being integrated smoothly and costs are under control. Our strategies for long-term growth are gaining momentum.”
Revenue for the period ended Mar. 31, 2006 rose 12%, the company reported, including the impact of both acquisitions and 3% organic (internal) growth.
A stronger Canadian dollar added approximately two percentage points to the company’s [overall] organic growth rate. It also accounted for an additional six percentage points to Canadian revenue growth.
Hughes noted that average premium rates continue to be lower than in the prior year. Looking out to the remainder of the year, he commented: “We expect continued declines in premium levels in the second half of 2006. However, that should not preclude our ability to grow organically.”
Acquisition activity continues to be “robust,” Hub reported. During 2005, Hub acquired 15 brokerages with aggregate annualized revenue of approximately US$45.9 million. In the first quarter of 2006, Hub acquired five brokerages with aggregate annualized revenue of US$5.1 million.
“We are pleased with the integration of our recently acquired businesses,” Hughes said. “We are also enthused about the collaborative marketing activities anticipated with the April 2006 acquisition of three brokerages from Citizens Financial Group, which had aggregate revenue of approximately US$45 million in 2005. We are working with CFG to provide expanded insurance brokerage services to more of their client base.”