Hub to Be Acquired
Chicago-based insurance brokerage Hub International Ltd. entered into an agreement to be acquired by international private equity group Apax Partners and Morgan Stanley Principal Investments. According to a statement released by Hub, the transaction values the company at about $1.8 billion. As of press time, the agreement allowed Hub to solicit alternative transactions through March 19.
Aon/Albert G. Ruben, a 120-employee firm managing risks in the film and entertainment sector, has become part of Aon's Entertainment Group. George Walden has been named Aon/Albert G. Ruben's new CEO, succeeding Sam Cargill, who assumes the role of group chairman. In addition, Paul Jones and Brian Kingman have been appointed co-managing directors in Ruben's 88-employee Los Angeles office.
Arthur J. Gallagher & Co. completed its acquisition of Lowndes Lambert Group Canada Ltd. in February, and an acquisition of InterNational Insurance Group Ltd. in January. LLG is a Canadian property/casualty retail insurance broker specializing in the transportation, hospitality and pharmaceutical industries. InterNational Insurance Group offers risk management and property/ casualty insurance services, specializing in life-sciences, hospitality, and environmental products and services. Financial terms were not released.
Beecher Carlson has joined forces with Florida-based T.R. Jones & Co. and its affiliate Kraft Insurance Agency. The transaction expands Beecher Carlson's geographic presence in Florida with the addition of five offices and enhances its expertise in the hospitality, health-care and construction industries.
HRH Revenues Up
Hilb Rogal & Hobbs Co.'s net income for 2006 was estimated at $87 million, a 54.8 percent increase over the previous year, the brokerage firm reported. Total revenues last year for HRH rose 5.5 percent to $710.8 million, with fees and commissions increasing 5.8 percent to $696 million. HRH's net income for 2005 was affected by a $42.3 million regulatory charge, due primarily to a settlement with the state of Connecticut over allegations that HRH steered clients to insurers paying the highest contingent fees. So far in 2007, HRH has made four acquisitions with annualized revenues of about $52 million.
In a March 1 filing with the Securities and Exchange Commission, Aon Corp. said it plans to restate its financial results for 2003, 2004, 2005 and for the first three quarters of 2006 after a review of its options granting practices revealed unrecognized compensation expenses. Aon said the cumulative impact of the delegated grants and other administrative errors from 1994 to 2006 amounted to $66 million before tax.
New E&S Broker
Camford National Insurance Brokers announced it has opened as a wholesale insurance brokerage serving property/casualty agents and brokers. The Lebanon, N.J.-based company will specialize in serving excess and surplus lines. The firm focuses on industries such as residential general contractors, commercial trucking, real estate and manufacturing.
--Compiled by staff from news and wire reports.
April 1, 2007
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