Insurance brokerage Hub bulking up Canadian benefits business with acquisition spree

The biggest insurance brokerage in Canada has been on a dealmaking blitz that may only be about halfway done, according to the company’s Ontario chairman.

Chicago-based Hub International Ltd. sells insurance, but it has also spent the past year expanding the Canadian side of its business, which advises companies on their employee benefits, such as health or retirement plans. It has been doing so in part by acquiring a number of boutique firms.

On Tuesday, Hub said it acquired for an undisclosed sum Toronto’s PDF Financial Group Inc., an independent brokerage that helps a company’s human-resources department manage employee programs. The acquisition was one of five such deals Hub has announced to date in October, involving three companies in Canada and two in the United States.

Hub is Canada’s biggest property and casualty insurance broker by a “healthy margin,” but it had heard back from some clients wanting advice about benefits and pensions as well, according to Gregory Belton, the executive chairman of Hub Ontario.

“We’re not only getting larger and filling out a geographic footprint, but we’re developing services for what we think is the under-served middle market of Canadian business,” Belton said in an interview with the Financial Post.

After announcing its Canadian benefit strategy in July 2018, Hub noted at the beginning of this year that it had already acquired 13 Canadian employee-benefit and pension brokerages since 2018, increased fee revenue to more than $50 million and opened seven new offices. Hub wants to earn more than $100 million in commission fees by 2021, and said it expected to open an additional 10 offices.

“I would say that we’re about halfway done in our acquisition strategy,” Belton said. “We have a fairly robust pipeline across the country, and you’ll see further acquisitions being closed in the coming months.”

Mike Berris, a partner at accounting firm Smythe LLP who specializes in valuations and M&A consulting in the Canadian P&C insurance industry, said he expects more activity in the benefits space — although not all brokers may be able to pull it off.

Even though it’s a risk-based product, you really have to have scale and expertise to do it properly.

Mike Berris, partner, Smythe LLP

“There’s a lot of desire, but there’s only so many people who are capable of doing that,” Berris said. “Even though it’s a risk-based product, you really have to have scale and expertise to do it properly.”

Hub has been scaling up since it formed in 1998 with the merger of 11 Canadian brokerages. It went public soon after, expanded into the U.S. and in 2007 was bought by private-equity firm Apax Partners and investment bank Morgan Stanley.

In 2013 Hub announced it was being acquired by funds advised by another private-equity firm, Hellman & Friedman LLC, in a deal that valued the brokerage at around US$4.4 billion.

Hub then said in October 2018 that it had agreed to a deal involving “a substantial minority investment” from funds managed by Toronto-based investment firm Altas Partners. The agreement implied a total enterprise value for Hub of more than $10 billion.

Since the deal, Hub’s website shows it has made more than 50 acquisition-related announcements. Currently, the brokerage has more than 11,000 employees, with more than 250 offices in the U.S. and about 200 in Canada, a spokesperson said.

“Like a lot of private-equity-owned brokerages, they have been very, very aggressive and they’re very, very effective in growing through acquisitions,” Berris said.

Belton said most Canadian businesses fit the mid-market mold, but that there is no “dominant player” in that section of the market right now for the sort of benefits business Hub is expanding. Even so, he said there has been “very robust competition” for the types of companies Hub is buying.

“Our aspiration is to become the dominant player, just as we are in the property-casualty side of the business,” Belton said.

IMS Demonstrates Insurance Telematics First: 42% Crash Reduction & 7% Combined Ratio Improvement

Waterloo, ON, Canada, Oct. 08, 2019 (GLOBE NEWSWIRE) — IMS, the insurance telematics technology arm of Trak Global Group (TGG) is now positioned to offer North American and European insurers unprecedented access to the learnings from driver data via TGG’s award-winning Carrot Insurance brand.

Carrot’s direct interaction with its installed customer base has driven innovative product development, including the latest telematics smartphone based “Better Driver” app, which  recently won the prestigious 2019 UK Insurance Times Technology and Innovation Award for Best Customer Mobile app.

“Carrot’s award-winning technology has modified driver behavior in a positive way, and we are eager to make our learnings accessible to insurers,” said Nino Tarantino, CEO- Americas, IMS.

Accessing this critical data will enable insurers to:

  • Improve policyholder engagement
  • Offer a reward platform that builds loyalty
  • Motivate safer driving behavior
  • Realize the positive impact on combined ratios

“We have developed and tested our insurance telematics propositions with our own Carrot customers so our insurer partners don’t have to,” Tarantino continued.  “No other telematics service provider has this kind of direct-to-policyholder experience and insight, but we do through Carrot, and we want to share what we have learned with the insurance companies we work with.”

Carrot, which launched in 2012, has since overseen a 42% reduction in the number of accidents among its customer base, thanks to its pioneering technology and an active risk management program, including rewards for good driving, which has turned the insurance experience on its head for policyholders.

Carrot’s policy has also built customer loyalty. The company has returned $5M to customers during the past seven years and the rewards program, in turn, offers a built-in incentive for consumers to check their status and driving feedback.  In doing so, frequently, consumers drive better and safer.

“Carrot’s telematics program has made a previously unprofitable market segment for us profitable again,” said Ed Rochfort, Managing Director of Carrot Insurance. “By analyzing telematics data we’ve been able to dramatically improve our risk pricing while reducing the cost of claims. A huge win by all accounts.”

“We’re making big improvements in reducing the cost of motor claims for our insurer clients, saving them time and money by providing indisputable proof of what actually happened in an incident. We believe Carrot’s claims data analytics has reduced CORs for our insurer partners by 7.7%,” Tarantino said. “In turn, our insurance customers are using these same insights from Carrot to create their own digital insurance strategies.”

For further detail on the Carrot difference, insurers can download IMS’ Carrot case study to access learnings and insights from this award-winning offering: https://www.intellimec.com/carrot-insurance-rewards-case-study. Alternatively, insurers can contact IMS for more information at: https://www.intellimec.com/carrot-insurance-insights.

About IMS

IMS, part of Trak Global Group, is a leading connected car and telematics solutions provider, delivering services and analytics to insurers, governments and enterprises. IMS is the developer of the cloud-based DriveSync® connected car platform which has received industry acclaim for its ability to offer customers a data source-agnostic, multi-device strategy for service provision.

About Trak Global Group

Trak Global Group (TGG) is one of the world’s largest telematics companies, gathering and interpreting data from connected devices to help organizations manage driver and vehicle risk. The group has long-standing partnerships with global insurers, leading motor manufacturers, corporate fleets and daily rental companies and is the UK’s largest insurance telematics business.

In late 2018, TGG acquired IMS, the 3rd largest insurance telematics business in North America. In addition to its partnerships with major insurers, it has more than 130 patents associated with connected car services and has pioneered the use of telematics technology for Road Usage Charging in the United States.

In September 2019, private equity house Three Hills Capital Partners took a significant minority stake in the business, providing in excess of $50 million in growth capital.

About Carrot Insurance

Carrot Insurance, also part of TGG, is a UK-based, award-winning telematics insurance broker specializing in novice drivers. In 2015, Carrot received the Prince Michael International Road Safety Award for its work in reducing young driver accident frequency, and in 2015, it launched Better Driver, an app-based product representing the UK’s first mass-market usage-based insurance product.

For more information on IMS:

Visit: https://www.intellimec.com

Hub International Acquires Ontario-based PDF Financial Group Inc.

Chicago, October 8, 2019Hub International Limited (Hub), a leading global insurance brokerage, announced today that it has acquired PDF Financial Group Inc. (PDF). Terms of the transaction were not disclosed.

Based in Toronto, Ontario, Canada, PDF is an independent brokerage offering consulting and outsourcing services for employee benefit programs, human resources, and related financial advice. Peter Demangos, Founder and President of PDF, will join Hub International Ontario Limited (Hub Ontario).

The move continues to reinforce Hub’s ongoing Canadian employee benefits growth and services strategy to expand its best-in-class employee benefits and retirement solution, addressing the challenges clients are facing, including in benefits communication, health and wellness, and retirement.

About Hub’s M&A Activities
Hub International Limited is committed to growing organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise. For more information on the Hub M&A experience, visit WeAreHub.com.

About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services. With more than 11,000 employees in offices located throughout North America, Hub’s vast network of specialists provides peace of mind on what matters most by protecting clients through unrelenting advocacy and tailored insurance solutions. For more information, please visit www.hubinternational.com.

Chubb Charity Challenge Approaches the $17 Million Mark Over 20 Years of Charitable Giving

Annual Golf Tournament Series Raises Nearly $1 Million for Second Consecutive Year, with Two Charities Receiving Top Prize of $50,000

WHITEHOUSE STATION, N.J., Oct. 3, 2019 /CNW/ — Last week, forty-five teams from across North America – the winners of regional golf events held throughout the year – competed in the 20th annual Chubb Charity Challenge tournament finals, held September 22-25 at The American Club in Kohler, WI. This year, two teams tied for first place and were crowned champions of the annual event: Lloyd Sadd Insurance Brokers (Lloyd Sadd), playing on behalf of Little Warriors; and IMA Select, playing on behalf of Hillcrest Ministries of MidAmerica, Inc. Each of the winning teams will present a $50,000 check to its chosen charity.

In total, more than 300 teams participated in the 2019 Chubb Charity Challenge, raising nearly $1 million this year for charities across the U.S. and Canada. Every team that participates in the tournament finals wins money for its charity. The amount each team wins depends on where they finish among the field upon conclusion of the two-day finals tournament.

“The Chubb Charity Challenge is an important annual tradition that underscores Chubb’s commitment to giving back to the communities where we live, work and serve,” said Chris Maleno, Division President, Chubb North America Field Operations. “As we celebrate its 20th anniversary, Chubb recognizes and thanks our network of brokers and agents that has participated in the Chubb Charity Challenge over the last two decades and contributed to its success – raising nearly $17 million to-date for worthy causes throughout North America.”

The Chubb Charity Challenge invites agents, brokers and clients to golf in regional tournaments hosted by local Chubb branches. Competing on behalf of their selected charities, the winning team from each regional tournament advances to the national tournament.

According to T. Marshall Sadd, executive chairman of Lloyd Sadd, winner of the Calgary regional, “Little Warriors, based in Edmonton, AB, is a charitable organization committed to the awareness, prevention and treatment of child sexual abuse. It is incredibly rewarding for our company to win $50,000 for a charity that is doing so much good within our community, and we are so appreciative of Chubb for this opportunity.”

The other winning team – IMA Select, winner of the Kansas City regional – played for Hillcrest Ministries of MidAmerica, Inc., which provides transitional housing and other programs that combat homelessness.

“This donation will help make a tremendous difference in Hillcrest Ministries’ ability to serve families in need,” said Jason Bottorf, Kansas market leader for IMA Select. “Words cannot describe how proud and honored we are to be able to deliver a check for $50,000 to this worthy cause. We are so thankful to Chubb for hosting this event and creating this platform for us to give back to our community.”

To find out more information about the Chubb Charity Challenge, including highlights of participating teams and the charities that have benefitted, visit chubb.com/CharityChallenge.

About Chubb
Chubb is the world’s largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: chubb.com.

Chubb Insurance Company of Canada has offices in Toronto, Calgary, Montreal and Vancouver and provides its products and services through licensed insurance brokers across Canada. For additional information, visit: chubb.com/ca.

SOURCE Chubb

Related Links

https://www.chubb.com/us-en

Mobile Phone Insurance Ecosystem Market Size | Incredible Possibilities

Source: All Times Tech

The research report presents a deep review of the Global Mobile Phone Insurance Ecosystem Market comprises of objectives analysis. The following segment centers around Mobile Phone Insurance Ecosystem market size, country-wise production revenue ($) and development rate estimation from 2019-2024.

The report additionally covers global Mobile Phone Insurance Ecosystem market share by industry players, product and applications. The report enables investors to evaluate the market, featuring the upcoming business opportunities, mindful of Mobile Phone Insurance Ecosystem industry news and arrangements by countries, technological development, limitations and difficulties in estimate years (2019-2024) and settle on a fundamental business decision.

Get Sample PDF of Report @ https://www.researchkraft.com/request-sample/973505

The key players covered in this study:

Allianz Insurance, AmTrust International Underwriters, Assurant, Asurion, Aviva, Brightstar Corporation, Geek Squad, GoCare Warranty Group, Apple, AIG

Market Segment by Type, the product can be Split into:

  • wireless carriers
  • insurance specialists
  • device OEMs
  • retailers

Market Segment by Application, Split into:

  • Physical Damage
  • Theft & Loss
  • Others

The Global Mobile Phone Insurance Ecosystem statistical surveying report studies the presence of the top to bottom market segments. The market is surveyed based on revenue (USD Million) and presents the significant players and providers affecting the market. Most of the Mobile Phone Insurance Ecosystem data, together with anticipated insights, is introduced in the report with the assistance of tables and figures and Mobile Phone Insurance Ecosystem introduction procedure causes the client to comprehend the market situation.

Get a discount on this research report @ https://www.researchkraft.com/check-discount/973505

Mobile Phone Insurance Ecosystem Market Regional Analysis Includes:

Americas, United States, Canada, Mexico, Brazil, APAC, China, Japan, Korea, Southeast Asia, India, Australia, Europe, Germany, France, UK, Italy, Russia, Spain, Middle East & Africa, Egypt, South Africa, Israel, Turkey, GCC Countries

The Mobile Phone Insurance Ecosystem report additionally forecasts global market growth, alongside characterization dependent on geographical conditions. The regions are delegated with information which is outfitted in the release of the global Mobile Phone Insurance Ecosystem market growth is consistently assembled from reliable industries for anticipating the advancement of each section.

Major Points Covered in Table of Contents:-

  1. Scope of the Report
  2. Executive Summary
  3. Global Mobile Phone Insurance Ecosystem Market by Players
  4. Mobile Phone Insurance Ecosystem Industry by Regions
  5. Americas
  6. APAC
  7. Europe
  8. Middle East and Africa
  9. Market Drivers, Challenges and Trends
  10. Marketing, Distributors and Customer
  11. Global Mobile Phone Insurance Ecosystem Market Forecast
  12. Key Players Analysis
  13. Research Findings and Conclusion

Tesla’s Model 3 earns insurance industry’s top safety rating

REUTERS

Tesla Inc’s Model 3 electric sedan has earned the top safety rating from the Insurance Institute of Highway Safety (IIHS), becoming the first Tesla to do so.

The IIHS has given the Model 3 its highest rating, top safety pick+. It said the Model 3 earned good ratings across the board for crashworthiness.

The car’s structure held up well in the driver-side small overlap front test, IIHS said.

Last month, Tesla said it was launching an insurance service designed to give drivers in California, its biggest market, lower rates because of safety features on its electric vehicles.

Tesla Chief Executive Officer Elon Musk has been one of the strongest proponents of the idea that car insurance rates should plummet as driver-assist and self-driving technology become standard.

The company’s cars generally rank among the most expensive vehicles to insure due to their high repair costs for components and sensor equipment, according to safety researchers and insurance providers. (Reporting by Debroop Roy in Bengaluru and David Shepardson in Washington; Editing by Shounak Dasgupta)

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