Business Services Industry

Other brokers may follow path taken by Hub and USI.(News)(Hub International Ltd.)(USI Holdings Corp.)

Business Insurance, March, 2007 by Roberts, Sally

Byline: SALLY ROBERTS With so much private equity capital ready to invest in the insurance brokerage market, a number of other large insurance brokers will follow down the same private equity ownership path as Hub International Ltd. and USI Holdings Corp., an industry consultant predicts.

That could ultimately benefit insurance buyers as companies owned by private equity firms are not distracted by financial pressures from Wall Street and also have access to capital from their sponsors to help build their firms, other consultants say. But private equity ownership has its downsides as well, the consultants say. Owners tend to hold on to their investments for a short time before either selling the firm or taking the company public again in an initial public...

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