Insurance brokerage company Hub International said that it has secured an undisclosed minority investment from Canadian investment firm Altas Partners.

Hub International-Wyoming

Image: Hub International in Gillette, Wyoming. Photo: courtesy of Mr. Satterly/Wikipedia.org.

The substantial minority investment, which is expected to come from funds managed by Altas Partners, gives Hub International a total enterprise value of more than $10bn.

Funds managed by Hellman & Friedman (H&F) will continue to be the largest investor in global insurance brokerage company whose management team will retain a significant equity position.

Hub International anticipates to report over $2bn in total revenue for the twelve month period ended on 30 September 2018, which is nearly double from the $1.1bn revenue for the twelve month period ended before its acquisition by H&F in October 2013.

Hub International president and CEO Marc Cohen said: “This transaction is a strong validation of Hub’s strategy and vision for the future, as well as our long track-record of organic and acquisition-driven growth. All employees, past and current, have contributed to this great moment.

“Altas’ long-term approach and deep expertise make them a welcome partner as we enthusiastically embark upon the significant opportunities ahead.”

Hub International said that it is making significant investments to provide enhanced customer experiences, including technology that speeds up the rate at which it can complete transactions and also to offer cost-efficient solutions to address the evolving requirements of customers.

Altas Partners managing partner Scott Werry said: “Hub has distinguished itself as the premier mid-market insurance brokerage through its unique regional structure and long, consistent track record of success. We have long-admired Marc, Marty Hughes (Hub’s executive chairman), and the entire Hub organization.

‚ÄúConsistent with our investment philosophy, we look forward to working with the Hub management team and H&F as we support the numerous growth opportunities ahead of the company.”

The transaction is anticipated to be completed by the year end and will be based on customary closing conditions and regulatory approvals.

Earlier this week, Hub International acquired the retirement plan consulting and financial services business of Felix Jones for an undisclosed price through one of its subsidiaries.