Hub International has revealed its corporate strategy to develop a “complete employee benefits solution” – by assembling best-in-class capabilities and entrepreneurial talent across Canada.
To that end, the global insurance brokerage has announced two new acquisitions – Optimum Group Benefits & Insurance Services in Coquitlam, BC and Wm. W. Hammond Insurance Agency in Leamington, Ontario. Both acquisitions bring Hub’s total acquired 2018 employee benefits commission and fee revenue to nearly $20 million, a release said. Hammond will join Hub Ontario and will report to executive chairman for Hub wealth management employee benefits and Hub Ontario Gregory Belton. Optimum will join Hub TOS and report to Hub TOS chief sales officer Carol Mills.
Terms of both acquisitions were not disclosed.
Hub has, however, revealed that it will continue to seek additional capabilities and talent, with plans to grow revenue in the employee benefits division to $100 million by 2021 via acquisition and organic growth.
“Hub recognized a mid-market employee benefits void in Canada. While mid-sized companies currently have the option of working with a large brokerage for employee benefit solutions, it’s challenging for those brokers to provide the resources necessary to drive value to the mid-market clients,” commented Hub International Canada president Tina Osen. “Hub’s shared service model enables our customers to retain a relationship with their local broker while gaining access to the tailored insurance solutions of a leading global brokerage.”
“Hub is interested in firms that can bring a new expertise to complement our offerings to aid our customers in attracting and retaining their current and upcoming workforce,” added Hub International president of employee benefits Mike Barone.
On top of the acquisitions, Hub has appointed Faizal Mitha to serve as chief innovation officer of the company’s employee benefits business. Most recently the vice-president of employee strategies at ES3 Advisory, which was acquired by Hub in April, Mitha has served at a number of major carriers and employers, and was instrumental in the founding of an employee benefits insurtech.
