Hub International acquires the benefits consulting practice of Morneau Shepell Inc.
Morneau Shepell doubles down on areas of growth and market leadership; Hub to round out Canadian employee benefits solution with extensive actuarial services
TORONTO, March 2, 2020 /CNW/ - HUB International Limited (Hub), a leading global insurance brokerage, and Morneau Shepell Inc. (TSX: MSI) (Morneau Shepell), a North American leader in integrated HR solutions, announced today the sale of Morneau Shepell's benefits consulting practice to Hub.
"Hub has been bullish on its strategy to provide comprehensive end-to-end benefits services that address the challenges Canadian employers are facing to achieve their recruiting, retention and cost management goals," said Tina Osen, President of Hub International Canada. "With Morneau Shepell's benefits consulting practice, Hub will deliver highly differentiated services across all five lines of our business – property and casualty, employee benefits, retirement, risk services and personal lines – to clients large and small, in-country and cross border."
Stephen Liptrap, President and Chief Executive Officer, Morneau Shepell, commented, "After a comprehensive review, we made the decision to divest our benefits consulting practice. We are very focused on our growth strategy, which includes being clear market leaders in the businesses in which we operate, owning the total well-being space, accelerating growth through geographic expansion and leveraging technology to deliver a seamless experience for our clients and their employees. The benefits consulting business is a strong, profitable asset and a great fit for Hub. Hub is focused on the benefits consulting space, which makes it a perfect home for this business. The benefits consulting business is core for them, and in their hands has more potential upside and opportunity to grow."
Morneau Shepell's benefits consulting practice focuses on providing tailored benefits solutions to clients – mainly large organizations, as well as small to medium – including actuarial services, integrated data analytics across lines of benefit, organizational health consulting and financial analysis solutions.
By adding Morneau Shepell's benefits consulting practice's services, Hub expands its strategic benefits solutions adding actuarial services to its already established solutions: pharmacy plan design; total health strategies and services for physical, mental, organizational and financial wellness; retirement preparedness and plan design; benefits communications and design services; digital benefits platform solutions; and cross-border benefits consulting.
"We remain committed to our benefits consulting clients, and together with Hub, we will ensure a smooth transition and a good partnership," said Nigel Branker, President, Health and Productivity Solutions and Executive Vice President, Morneau Shepell. "The closing of this strategic transaction marks the beginning of a partnership between Morneau Shepell and Hub – Hub choosing Morneau Shepell as a key partner in delivering Internet-based Cognitive Behavioural Therapy (iCBT) services and employee well-being services and Morneau Shepell selecting Hub as a preferred provider for benefits consulting services."
Hub is the largest P&C broker in Canada with more than 130,000 corporate clients. Since launching the initiative to expand its Canadian Employee Benefits solution in 2018, Hub has acquired 28 Canadian brokerages and has grown its Employee Benefits practice to more than 20 offices, over 400 staff and in excess of $100M in revenue and $1.5B in premium.
"Hub's investment in Morneau Shepell's benefits consulting practice rounds out our capabilities in the large and jumbo employer market, while providing additional capabilities, ranging from association products to actuarial services, that can be scaled to small- and mid-market clients," said Mike Barone, President of Employee Benefits at Hub. "This is in line with our number one goal to provide a best-in-class employee benefits experience to clients regardless of size."
JP Girard, Morneau Shepell's Health & Benefits Consulting Canadian Practice Leader has joined Hub as Executive Vice President, Benefits Consulting – National Accounts and is named to Hub's Canadian Employee Benefits leadership team. He will remain located in Halifax, Nova Scotia, Canada. Mr. Girard will report directly to Rob Keilty, CEO of Hub International Ontario.
"On behalf of myself and the team joining Hub from Morneau Shepell, we are excited to be working alongside an extraordinary group of highly committed and talented professionals," said Mr. Girard. "We look forward to contributing to the growth of Hub's national employee benefits practice, broadening and expanding our services and delivering a comprehensive solution for any sized company in Canada."
About Morneau Shepell
Morneau Shepell is the leading provider of technology-enabled HR services that delivers an integrated approach to well-being through our cloud-based platform. Our focus is providing everything our clients need to support the mental, physical, social and financial well-being of their people. By improving lives, we improve business. Our approach spans services in employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services. Morneau Shepell employs approximately 6,000 employees who work with some 24,000 client organizations that use our services in 162 countries. Morneau Shepell is a publicly traded company on the Toronto Stock Exchange (TSX: MSI). For more information, visit morneaushepell.com.
About Hub's M&A Activities
Hub International Limited is committed to growing organically and through acquisitions to expand its geographic footprint and strengthen industry and product expertise. For more information on the Hub M&A experience, visit WeAreHub.com.
About Hub International
Headquartered in Chicago, Illinois, Hub International Limited is a leading full-service global insurance broker providing property and casualty, life and health, employee benefits, investment and risk management products and services. With more than 12,000 employees in offices located throughout North America, Hub's vast network of specialists provides peace of mind on what matters most by protecting clients through unrelenting advocacy and tailored insurance solutions. For more information, please visit www.hubinternational.com.
SOURCE Morneau Shepell Inc.