Hub International acquires 3 independent Michigan insurance brokerages
5 mins read

Hub International acquires 3 independent Michigan insurance brokerages

The Chicago-based Top 10 global insurance brokerage and financial services group has acquired two independent insurance agencies, one in Grand Rapids and one in Midland.

Chicago-based Hub International Ltd. said Thursday, March 7, that it has acquired Compass Insurance Agency, a personal and commercial insurance brokerage in Grand Rapids, from its founder and CEO Jack Hodeman.

The Hub also acquired Arbery Insurance Agency in Midland and Michigan Insurance Associates from owners Brian Holmes and Michelle Chesney, respectively. The first provides commercial and personal insurance, and the second provides employee benefit services.

Terms of the three deals that closed on March 1 were not disclosed.

Keep up with all things West Michigan business. Sign up for our free newsletter today,

For the time being, the agencies will retain their respective names, adding “A Hub International Company” at the end. In future these will be included in the Hub International brand.

Carolee Hofstee, president of Hub International's Midwest East division covering Michigan and Indiana, said Hub wanted to continue growing its footprint and offering in Michigan and these deals provided the perfect opportunity.

“We closed them all in one day, and it was a lot of work, but it's very exciting,” Hofstee said.

Hub International now has 10 offices throughout Michigan, including Grand Rapids, Midland, Kalamazoo, Traverse City, Brighton, Farmington Hills, Troy and Utica.

These deals follow the hub acquisition Last year it added two physical offices in Troy, among seven affiliated brokerages in metro Detroit.

Compass employees will eventually move to the Hub's other Grand Rapids-area location, shown here at 1591 Galbraith Avenue SE in Cascade Township. Credit: Courtesy Hub International

Hofstee said all 13 Compass employees will join Hub's team, while Hodeman will exit the company he founded in 2009 to “pursue other things.” Hodeman did not immediately respond to a request for comment about his next steps.

Hodeman will retain ownership of the Compass office at 280 N St. NW in Grand Rapids. Crain's Grand Rapids Business Earlier reported plans build 44 apartments On 2.5 acres of riverfront property.

The Compass team will initially continue to operate at 280 Ann Street, but will eventually move to the Hub's other local office at 1591 Galbraith Avenue SE in Cascade Township, which it leased and renovated just before the pandemic.

“We've got a lot of space in that office, and it makes sense for all of us to be together and work together,” Hofstee said.

Hofstee said he had the opportunity to meet the Compass team a few years ago and it left a lasting positive impression.

“They were doing some really great things in our market, and … overall, they were providing an exceptional customer service experience,” he said. “They were on our radar as someone who would be a great acquisition partner for us to help grow our footprint and our operations.”

Hofstee said Hub's top priority in its acquisition strategy is to integrate strong teams that are “customer-focused” and “go the extra mile.”

“Compass is definitely an organization like that,” she said. “I always tell people that we don't buy a magic show without magicians, and so the employees are the most important part of any of these transactions.”

In addition to selling personal and commercial insurance, Compass agents will now be able to offer clients the Hub's full range of insurance products and services, including employee benefits, retirement and private wealth services and risk management.

“We make each other better in that regard,” Hofstee said.

Hofstee described the talent in the Midland agencies as “high performing”, noting that teams and firm principals Chesney, Holmes, Matt Granzow, Jacob Howard, Neil Provost, Jared Leidich and Austin Rapanos will all relocate to the hub.

Hub International has more than 17,000 employees in 530 offices worldwide. According to Business Insurance, in 2022, Hub recorded annual revenues of $3.7 billion and an overall valuation of $23 billion, making it the fifth-largest brokerage in the world. ranking last July.

Grand Rapids-based Acrizar was at its peak that year rank However, the firm is the sixth largest brokerage globally with revenues of $3.62 billion in 2022 informed of In December it broke that benchmark with brokerage revenue of $4.3 billion in 2023. Business Insurance has not yet released its rankings based on 2023 revenue.

According to year-end insurance M&A, Hub International completed 65 acquisitions last year, down from 70 deals in 2022, putting the brokerage first among buyers with 20 or more deals last year . report From Chicago-based Optis Partners.

The acquirer moved into fourth place among the most active buyers as it ended 2023 with 36 acquisitions, compared to 107 in 2022. focus shifted On technology transformation and branding initiatives that span years.

More from Crain's Grand Rapids Business:

Multifamily housing starts decline amid higher financing costs

South Korean EV component supplier to invest $43.2 million in Holland for North American headquarters

Southfield investor buys 182-unit Kentwood apartment complex for $32 million

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.