Apax Partners

A middle market insurance broker with an extensive footprint in the United States and Canada

Hub International (‘Hub’) is a middle market insurance broker with an extensive footprint in the United States and Canada. Hub has over 200 offices and employs over 4,500 people. Hub markets property, health insurance and employee benefits insurance lines to small and medium sized businesses and personal lines insurance to high net worth individuals and affinity groups. Hub is a key distribution asset in the North American insurance industry and, through its 750 brokers, it controls significant distribution of insurance in United States and Canada.

In June 2007 Apax Funds (AEVII and USVII), together with Morgan Stanley Principal Investments, acquired all of Hub’s common shares. Prior to the acquisition, HUB had a solid track record of organic and inorganic growth and had completed over 115 acquisitions since 2000. Since the North American insurance brokerage industry is highly fragmented, there are over 30,000 potential acquisition targets in Hub’s business segments. Additionally, Hub enjoyed high levels of recurring revenues through renewals and cash conversion and had a sound management team.

With Apax Partners’ industry expertise, international network and extensive public-to-private transaction experience, Hub is well positioned to continue its growth trajectory. Since going private, Hub has grown from the fifth largest insurance broker in Canada to the second largest in the country and from the eleventh largest US brokerage to the tenth largest in the country. In 2007, Hub acquired US$127m of revenue. Additionally, Hub’s staff strength has increased by 22% since going private. HUB is expected to remain on track for growth and improved performance and the overall outlook remains positive.