Hub International Limited announced the acquisition of Cross Border Underwriting Services Inc. (CBUS), a Toronto-based wholesale insurance brokerage. CBUS will become part of The Wholesale Insurance Group Inc., a subsidiary of The Hub Group (Ontario) Inc., the company’s Toronto-based hub.
The stock of CBUS, whose annual revenue is approximately US$300,000 (Cdn$400,000), was purchased from KRG Insurance Brokers Inc. for an undisclosed amount of cash. CBUS provides coverage placement and marketing solutions for retail insurance producers whose Canadian clients have operations in the United States and those whose U.S. clients have operations in Canada.
The Hub Group (Ontario) Inc. is one of 11 regional “hubs” that make up Hub International Limited, one of the largest insurance brokerages in North America. Hub International’s growth strategy includes the acquisition of large entrepreneurial brokerages that service primarily middle market clients, and the expansion of these regional hubs through fold-in acquisitions of smaller, local firms. Since January 1, 2003 Hub has made five fold-in acquisitions, including CBUS.
In discussing the transaction, Martin P. Hughes, Hub chairman and CEO, said CBUS would add significant service capabilities for all of the Company’s hubs.
“The enormous amount of commerce between the United States and Canada affords many middle-market companies in both countries opportunities to do cross-border business,” Hughes said. “But there are some country-specific variations in the way coverage is arranged, and CBUS will strengthen our ability to help our retail producers bridge those differences for their clients.”
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