Chicago-based Hub International Limited announced an agreement to purchase Fifth Third Insurance Services, Inc., an insurance brokerage subsidiary of Cincinnati-based Fifth Third Bancorp.
“The acquisition, which is expected to close in 2002, will be paid for with cash,” said the bulletin. Hub is acquiring only the P/C business, which genrates around $25 million in annual revenue. Fifth Third will set up a separate company to keep the life and title portions of its insurance agency operations.
Martin P. Hughes, Hub’s Chairman and CEO noted that the “acquisition will significantly increase Hub’s penetration in several key regions in Michigan and add important new offices in Indianapolis and Evansville, Indiana.” In effect the acquired business will become an “11th hub brokerage.” The Indiana-based offices generate more than $10 million in annual property and casualty and benefits revenue, “The additional offices in Michigan, where our Burnham Insurance Group is located, will strengthen our presence and ability to deliver risk management services to the middle-market business community there, Hughes continued.”
Roger Forystek, CEO of the Fifth Third Agency’s operations, will continue in his current position and will join Hub’s Executive Committee. “Roger has played a key role in the management and growth of the Agency for the past five years, and we are looking forward to his contribution to management at the regional level for Hub International as well,” Hughes stated.
Upon completion of the transaction the Agency’s name will be changed to Hub International of Indiana Limited.
Speaking of the transaction, Mark Graf, Fifth Third Bancorp Treasurer, stated, “Hub International is a proven player in the insurance brokerage arena. They are committed to growing their presence and have the infrastructure to support their plan. We remain bullish on the opportunity to focus on growing our core businesses of Retail Banking, Commercial Banking, Investment Advisory and Processing Solutions throughout the Midwestern United States.”
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