HUB expands into Florida region

HUB International Limited (NYSE/TSX: HBG) plans to launch its first regional hub in the Southeastern United States through the planned acquisition of a Florida-based insurance broker.
This acquisition represents the platform for HUB’s further expansion in the region.
Founder of the Florida brokerage Hector Fortun will lead the new HUB as president of Hub International Florida, Inc., which initially will do business as Hub International Fortun, according to the broker.
Martin P. Hughes, HUB’s chairman and chief executive officer, says Fortun has established a strong reputation among Florida businesses as well as an efficient operating model for brokerage services.
The acquisition, which includes the assets of Fortun Insurance (retail), ABCO Insurance (wholesale) and American Inspection Company, as well as the stock of ABCO Premium Finance (premium financing), will add US$10 million to HUB’s annualized revenue base.
The acquisition, which facilitates HUB’s business growth into Florida, offers exceptional opportunity for HUB, according to Hughes. “Population growth is strong, including a rapidly growing Hispanic demographic and a strong influx of retirees from our traditional markets. The Fortun organization is ideally situated to drive our growth in all segments of this region.”
The transaction, according to HUB, will also strengthen it’s personal insurance services in the State of Florida, as the increase in market and product depth will contribute to key value-added solutions for local residents.
Pending due diligence and subject to the satisfaction of regulatory and other customary closing conditions, the transaction is expected to close during the third quarter of 2006.