To say Hub International Insurance Services Inc. is an acquisitive company would be an understatement.
The Chicago-based firm, which touts itself as the world’s fifth-largest insurance broker, has acquired more than 300 agencies in the last five years, including two Irvine-based firms.
“We’re always in the acquisitive mode,” Ann Wilson, Hub’s senior vice president overseeing Orange County and Los Angeles, told the Business Journal.
It acquired the two local firms in the past year, including Wooditch Company and Invensure Insurance Brokers Inc.
The acquisitions and organic growth spurred Hub’s Newport Beach-based office to boost revenue 25% to $50 million. It now ranks No. 8 on the Business Journal’s annual list of insurance brokers, up from No. 13 in 2017 when it first appeared on our annual list with $21 million in OC sales (see list, page 24).
“We’ve only grown” in Orange County, Wilson said.
Canadian Beginning
Hub International Insurance Services was formed in 1998 when 11 Canadian brokerages merged and began trading as a publicly traded company under the HBG ticker. It moved its headquarters to Chicago in 2001.
In 2007, the company went private and is currently majority owned by San Francisco-based Hellman & Friedman LLC.
Hub now employs 17,000 in North America spread among 530 offices. It has eight industry specialties such as healthcare, hospitality and construction.
Wilson, who has been in the insurance industry for almost 20 years, joined Hub in 2015. In April, she was promoted to SVP where she is focusing on a new book of business.
“We as a region are a significant revenue center” for Hub, Wilson said. “Management has looked to us in recent times for what we’re doing as a practice—trying to ensure that we’re very engaged in the community.”
Wilson said she’s seeing “huge amounts of dollars” pouring into pharmaceuticals as well as infrastructure companies gearing up for the infrastructure bill that passed Congress earlier this year.
“When things get rough, we see growth in nonprofits,” Wilson said. “When people are hurting, they turn to those organizations.”
She’s seeing a pullback in sectors like logistics, which had “huge growth” two years ago as well as commercial properties and mortgage industries.
“We’ve seen a lot of struggles in those spaces,” she said.
Pandemic Changes
The pandemic has “definitely” caused changes in the industry.
“Companies are still trying to figure out what the new normal is,” Wilson said.
“Organizations are under tremendous pressure—what is the right combination of hybrid work, how to get through new laws, new compliance.
“It’s a really dynamic time. It hasn’t slowed down since the pandemic. If anything, it’s increasing.”
Hub itself has switched to a hybrid model where its employees come into the office two to three days a week. As a result, it expects its physical footprint to remain static.
“We’re not looking to expand our use of office space,” she said.
More Acquisitions
It is constantly on the lookout for acquisitions.
“It’s really important that there is a cultural fit. Agency size is something that we have in mind. We’re looking for agencies with more than a one-man operation,” Wilson said.
In May, Hub announced it acquired the Wooditch Co., an Irvine-based provider commercial insurance, risk management and employee benefits services firm advising clients in various industries, including construction.
“Hub provides an ideal platform for us to continue to grow,” founder Bill Wooditch said at the time of the acquisition. “Hub has strong capabilities and resources in all key areas, including specialty industries, claims, technology and more, to perfectly meet the needs of our clients.”
Last December, Hub also acquired Irvine-based Invensure Insurance Brokers, a privately held insurance and risk management firm. Chief Executive Robert Parent and Executive Vice President Charlene Richards joined Hub.
Wilson sees more possible acquisitions in both Los Angeles and Orange County in the coming year.
“We are a dynamic growing organization,” she said. “Continuing growth is the number one priority for us in the next five years.”
