Hub reports profit growth despite environment of declining rates

Hub International Limited (NYSE: HBG) (TSX: HBG) reported strong growth in revenue and profits for 2007 Q1 despite an environment of falling rates.
Overall, Hubs 2007 Q1 revenue of US$171.8 million represented a US$37.7 million (or 28%) increase over its 2006 Q1 revenue of US$134.1 million.
In 2007 Q1, quarterly total revenue growth of 28% included organic revenue growth of 7.2%, despite most hubs operating in declining rate environments, Hub announced in a press release.
For Canadian-based hubs, 2007 Q1 revenue of US$40.5 million represented a US$2.6 million (or 7%) increase from 2006 Q1 revenue of US$37.8 million.
In Canada, Hubs organic commission income growth was 3.9% and organic revenue growth was 4.1%. Excluding the impact of foreign exchange, organic commission income and organic revenue growth was 5.3% and 5.5%, respectively.
Canadian-based hubs are not presently affected by guaranteed supplemental commission arrangements, Hub noted in a statement.
For U.S.-based hubs, 2007 Q1 revenue of US$130.8 million represented a US$35 million (or 37%) increase from 2006 Q1 revenue of US$95.8 million.
In the United States, organic commission income growth was 5.8% and organic revenue growth was 8.5%. Including the effect of guaranteed supplemental commission revenue earned during the first quarter of 2007, organic revenue growth was 10.0%, the company noted.