Morneau Shepell Inc. is exiting the benefits consulting business. HUB International (HUB), a global insurance broker providing property and casualty, life and health, employee benefits, and other products and services, has purchased the business for $70 million.
The exited business represents approximately three percent of overall Morneau Shepell revenue and has margins slightly above the aggregate margins of the overall business.
“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,” said Stephen Liptrap, President, and Chief Executive Officer.
“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,” continued Liptrap.
Morneau Shepell’s employees and clients for benefits consulting are moving to a respected leader in the employee benefits market. The team of employees will continue supporting these clients under the new owners. “We extend our thanks to our former colleagues for their past contributions, and wish them well at HUB,” Nigel Branker, President, Health and Productivity Solutions and Executive Vice President.
JP Girard, Morneau Shepell’s health and benefits consulting Canadian practice leader, has joined Hub as an executive vice-president. Chicago-based Hub is a global insurance broker that provides property and casualty insurance, health and life insurance, employee benefits, investment, and risk management products and services.