In early January Hub International acquired Canadian insurance broker HKMB International Insurance. For Hub International, this transaction will generate more than $100 million in total annualized revenue, and total Canadian premium volume is expected to exceed $2.1 billion. The amount of the transaction was not disclosed.
Although HKMB is well established in the Canadian life and health market, the company is mainly specialized in property and casualty insurance. And Hub International plans to keep it that way. "Obviously, we plan to grow business in every one of our businesses. But when it comes to HKMB, we will mainly focus on their P&C activities," Kirk James, vice-president, secretary and chief corporate development officer, told The Insurance Journal from his office in Chicago Illinois.Mr. James said the company will leave it to its two Canadian subsidiaries,
Hub Financial and Hub Capital, to continue developing the Canadian life insurance and wealth management markets. "However, it is possible that we will make an acquisition in the life insurance market because we believe that sector remains considerably fragmented and has been for a number of years," Mr. Kirk added.
Hub Financial does not have any specific timetable in regards to making acquisitions. "We will continue to make them on an opportunistic basis, if we should find a company that proves to be a good fit," he said.
HKMB International employs approximately 240 people in Vancouver and Ontario. While the HKMB Vancouver office will be consolidated into HUB International TOS Insurance Brokers, the other office will take on the name of Hub International Ontario.