InsurTech Leader HUB International Secures $1.6 Billion Funding, Aiming for $29 Billion Valuation
HUB International, a leading global insurance brokerage firm based in Chicago, has recently achieved a significant milestone with a remarkable $1.6 billion minority equity investment. This investment has elevated the company’s valuation to $29 billion, marking it as the highest valuation ever recorded for a privately held insurance broker.
Investment Details and Major Players
The substantial investment round is spearheaded by funds and accounts advised by T. Rowe Price Investment Management, alongside notable participation from Alpha Wave Global and Temasek, as reported by InsurTech Insights. Both new and existing institutional investors have shown a strong desire to support HUB’s growth trajectory.
HUB International’s Growth Strategy
Known for its comprehensive suite of insurance and risk management services, HUB International has rapidly ascended to become one of the world’s top five insurance brokers. The company primarily focuses on the middle market, leveraging a combination of strategic acquisitions and organic growth to solidify its position in the InsurTech sector.
Use of Newly Raised Capital
- Further acquisitions to expand market presence
- Repayment of existing debt
- General corporate purposes
This latest capital influx aligns with HUB’s Liquid Private Placement initiative launched in 2023, which offers periodic liquidity opportunities for shareholders.
Historical Valuation Growth
Over the past decade, HUB International has experienced extraordinary valuation growth:
- 2013: Valued at $4.4 billion following a significant investment by Hellman & Friedman (H&F).
- 2018: Valuation rose to $10 billion after Altas Partners’ entry.
- 2023: Further increased to $23 billion when Leonard Green & Partners (LGP) acquired a minority stake.
During this period, annual revenues skyrocketed from $1.1 billion in 2013 to a projected $4.8 billion by 2024.
Leadership Insights
HUB International’s CEO, Marc Cohen, stated, “This transaction is another milestone in HUB’s long-term commitment to strategic growth. Our focus on middle market specialization, innovation, and mergers & acquisitions has delivered strong organic performance and a differentiated client offering.”
Investor Confidence
The newly raised capital primarily serves as primary capital, with limited interest from existing shareholders to sell their equity. H&F will maintain its controlling interest, while HUB’s management will continue to retain substantial equity. Additionally, Altas Partners and LGP will remain minority shareholders and retain their board representation.
According to Hunter Philbrick, a partner at Hellman & Friedman, “Our long-standing relationship with HUB reflects the caliber of the organization. As the world’s fifth-largest broker and a middle market leader, HUB’s focus continues to drive exceptional growth.”
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