Insurance Industry Continues to Consolidate
As most brokers are likely aware, the last decade has seen a significant uptick in consolidation in the insurance industry. The late 1990’s saw a boom in merger and acquisition activity, resulting from rising stock markets, declining interest rates, industry deregulations and increased globalization. One of the latest acquisitions is that of the Hub International Ltd. purchase of Laubacher Insurance Agency, Inc.
Laubacher is a California-based agency providing property and casualty, employee benefits, and personal lines services. The agency’s main focus is on farm and ranch insurance. Owners Tom Laubacher and Harry Crosby will be joining Hub’s California business as vice presidents, increasing Hub’s employee base to 950 people in California. This acquisition supports Hub’s growing presence in California.
Hub International has also been purchasing insurance brokerages nationwide; adding Texas-based Alexander Insurance Agency in February, and New Jersey-based Fotek Insurance Agency in November. Hub is not the only company to make recent acquisitions; just recelty KKR-backed Alliant Insurance Services announced their purchase of Kassa Insurance Services Inc. and GTCR-backed AssuredPartners Inc. struck a deal for Amtech Insurance Brokers.
While the thought of mergers and acquisitions stirs up feelings of fear for many agents and brokers who are worried about being laid off, many times agencies have acquired other firms for their employees’ skills and experience. As the level of expertise needed to ensure compliance and profits is more critical than ever, this is a very important factor to note.
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