Hub International Achieves $29 Billion Valuation with New Minority Investment

Hub International Reaches New Heights with Significant Investment

In a landmark achievement, Hub International Limited (HUB) has secured a substantial minority investment which values the company at a staggering $29 billion. This groundbreaking deal reflects a definitive agreement for a minority common equity investment of approximately $1.6 billion, spearheaded by notable investment groups including T. Rowe Price Investment Management, Alpha Wave Global, and Temasek. This latest investment symbolizes the rising confidence in HUB’s robust growth, particularly in the thriving market segments it serves.

HUB's journey from a valuation of $4.4 billion in 2013 to today's impressive mark showcases not just an evolution but a validation of their persistent commitment to growth. Notably, this latest valuation marks HUB as the highest-valued private insurance brokerage to date. Having experienced an explosive revenue increase—from $1.1 billion to $4.8 billion between 2013 and 2024—the firm is underlined by a proven record of organic growth supported by its strategic approach to market engagement and service delivery.

The continuous influx of investments serves as a testimony to HUB's reliable scale and profitability. As the firm emphasizes its focus on middle and upper-middle-market clients, HUB underlines the importance of its unique offerings—characterized by industry-leading net new business performance, strategic cross-selling measures, seamless mergers, and acquisitions integration, as well as innovative digital solutions. Marc Cohen, Chairman and CEO of HUB, articulates this vision succinctly, indicating that their unmatched middle-market experience over the past 25 years distinctly differentiates them in the landscape of financial services.

Innovation and Strategic Insight
As HUB anticipates the future, the focus remains on driving innovative solutions amongst various sectors. They continually strive for excellence in industry and product specialization in risk management offerings. Cohen assures that ongoing investments in proprietary products and strategic management acquisitions underline HUB’s commitment to maintaining consistent organic growth and generating new business opportunities in the future.

In announcing this major investment, HUB continues to evolve its approach to shareholder liquidity through an innovative Liquid Private Placement (LPP), meant to facilitate regular liquidity options for existing shareholders. This empowers existing institutional investors with the freedom to pursue liquidity strategies, allowing HUB to strategically channel investment proceeds to fuel growth initiatives, manage debt, and improve cash flow.

The Investor Relationship
Holding a controlling stake alongside its existing investors, Hellman & Friedman (HF), HUB anticipates that the infusion of capital will foster further innovations and development within its operations. HF's long-standing relationship with HUB highlights the firm’s caliber and operational focus, leading them to become the fifth largest broker globally, reflecting a commitment to serving the middle market effectively.

“This next chapter exemplifies our dedication to fostering an environment where strong partnerships can flourish,” says Hunter Philbrick, Partner at HF. This investment emphasizes a positive trajectory motivated by an ongoing partnership with investors and the commitment to growth across vital sectors.

Conclusion

As HUB International gears up for this transformative investment, the future looks bright. With an established reputation and a robust infrastructure, HUB stands resolute as it navigates the broader financial landscape. Expect continuous evolution, strategic partnerships, and innovative growth strategies as HUB embarks on the next phase of its journey towards becoming a leading player in the global insurance and financial services scene.