Hub International Limited said it plans to accelerate its penetration of the transportation insurance market by acquiring Vermont-based Coburn Insurance Agency, Inc. The $9 million revenue broker has entered into a letter of intent with Hub International Transportation Insurance Services Inc. (HUB Transportation).
The proposed transaction will result in the formation of one of the nation’s largest transportation insurance speciality practices, with an emphasis on trucking, according to the firms.
Hub International recently expanded its transportation practice in October with the acquisition of Kaufman and Kaufman, a $9 million revenue brokerage based in Salt Lake City. With the acquisition of Coburn, Hub’s transportation practice will have annualized revenue of approximately $25 million from more than $200 million in premiums, with strong operations in both the eastern and western United States.
“We are making a substantial commitment to growth in the transportation brokerage sector, which is a profitable and underserved segment of the insurance market,” said Martin P. Hughes, chairman and chief executive officer of Hub International Limited. “Specialty practices are an increasingly important component of our growth strategy, as evidenced by several of our recent acquisitions.”
Coburn has offices in Burlington (Colchester) Vermont; Hilton Head, South Carolina; Memphis, Tennessee; and Deland and New Smyrna Beach, Florida. Scott Light, Coburn’s president, will become president of Hub Transportation, reporting to Dale Kaufman, chief executive officer.
Completion of the Coburn acquisition is subject to the execution of a definitive purchase agreement and other customary closing conditions. Closing on the transaction is expected during the first quarter of 2007.