HUB expands Gulf South operations

Parties involved have confirmed that a definitive agreement has been signed for leading North American insurance brokerage, HUB International Limited, to purchase Strategic Employment Benefits Services of Louisiana for an undisclosed amount and confidential takeover terms.

“We were founded in 1991 [and are] one of the largest independent benefits consulting organizations in the region,” said SEBSL Employee Benefits Specialist Len Fontaine. “With HUB acquiring us we will become one of the largest [benefit providers] in the Gulf South. It also gives us the ability to expand on our product offerings and services.”

Fontaine said that added financial resources, traditional markets, expanded client solutions, actuarial and legal services will be expanded with this merger.

HUB has existing Louisiana offices in Houma and Covington. SEBSL is headquartered in Metairie with offices in Houma, Covington, Lafayette and Baton Rouge.

As a full-service employee benefits consulting firm, SEBSL began operations in 1991 under the leadership of Kevin Gardener, who will head the newly aligned HUB Gulf South employee benefits division. SEBSL Vice President Mike Ford will continue his second spot with the expanded company division. Fontaine said he did not anticipate the merger to threaten any existing employee jobs.

HUB International Limited is headquartered in Chicago and is among the top 10 companies of its kind in the world. It was formed by 11 insurance brokerages in 1998 and by 2002 the corporation presented an initial public offering that raised more than $88 million on the New York Stock Exchange. By 2005 the company’s revenue increased by 37 percent. On Monday, after being hard hit with the rest of Wall Street during the past two weeks, HUB opened at $28.15 a share. Since becoming publicly held, HUB has acquired more than 80 insurance brokerages and related companies. HUB International restricts access to its current financial information.

“[SEBSL] has built an outstanding organization with a strong reputation for personalized service and superior benefit consulting,” HUB International Gulf South President Steve Terry said. “They have helped Gulf Coast businesses manage the challenges of rising premium costs, increasing regulations in today’s economic uncertainty. We look forward to joining forces with [SEBSL] and delivering enhanced solutions to the clients and communities we serve.”

“In addition to the services and products we have always offered, we will now have in house legal and actuarial services and also the ability to offer property and casualty products, and expanded risk services,” Fointaine said.

Employee benefits specialist Len Fontaine (standing) looks over data with internal service representative Brook Brunet (seated at left), while internal service representative Michelle Richaud prepares to take on new product offerings. MIKE NIXON