Chicago-based insurance broker Hub International Limited said it plans to acquire Vermont-based Coburn Insurance Agency Inc., an insurance agency specializing in the trucking industry. Financial details were not released.
Hub said completion of the Coburn transaction is subject to the execution of a definitive purchase agreement and other customary closing conditions. It is expected to close during the first quarter of 2007.
Coburn, with revenues reported at $9 million, specializes in transportation risks. It has offices in Colchester, Vt.; Hilton Head, S.C.; Memphis, Tenn.; and Deland and New Smyrna Beach, Fla.
Hub said the deal would result in the formation of one of the nation's largest transportation insurance specialty practices, with an emphasis on trucking.
Scott Light, Coburn's president, will become president of Hub Transportation, reporting to Dale Kaufman, chief executive officer.
Hub expanded its transportation practice in October with the acquisition of Kaufman and Kaufman, a $9 million revenue brokerage firm based in Salt Lake City.
With the acquisition of Coburn, Hub's transportation practice will have annualized revenue of approximately $25 million from more than $200 million in premiums, with strong operations in both the Eastern and Western United States, Hub said.
The combined strength of the operations, the company said, will provide Hub with increased accessibility to insurance markets.
“We are making a substantial commitment to growth in the transportation brokerage sector, which is a profitable and underserved segment of the insurance market,” said Martin P. Hughes, chairman and chief executive officer of Hub. “Specialty practices are an increasingly important component of our growth strategy, as evidenced by several of our recent acquisitions.”
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