Chicago-based insurance broker Hub International reported net income rose more than 200 percent in the second quarter based on strong performance by its producers.
"We are really pleased with the results we posted, particularly for us because it is the result of a lot of hard work that we have put into organic growth," said Martin P. Hughes, chairman and chief executive officer, during an analyst's conference call today.
Mr. Hughes said the company does not "have much exposure in the cat exposed areas, so for us to keep posting better organic growth sequentially, and to be able to demonstrate that we can grow this business in spite of the soft market, is really pleasing to us."
For the second quarter, net income increased $12 million compared to last year, from $4 million or 12 cents a share, to $16 million or 44 cents a share. Revenues increased 32 percent or $35 million, going from $111 million to $146 million.
For the six months, net income is up 28 percent or $12 million, from $21 million or 59 cents a share, to $33 million or 92 cents a share. Revenues increased 22 percent or $50 million, from $230 million to $280 million.
Commission income saw an increase of 29 percent--8 percent organic--of $30 million, from $104 million to $134 million in the second quarter.
Executives credited the improved results to a cross section of production across the country.
Mr. Hughes called the recent announcement of the company's intent to acquire Fortun Insurance Agency, based in Coral Gables, Fla., a critical move in its plans to establish a foothold in Florida and the Southeast region.
In morning trading, Hub's stock was up 26 cents a share to $25.06.
The firm also announced it would pay a quarterly dividend of 7 cents a share on Sept. 30 to shareholders of record as of Sept. 15.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
