Broker consolidators lift revenue

Results for broker network consolidators to the end of September 2001 show increased revenues and signs that the hardening market will have positive impact on bottom-lines.

Calgary-based Anthony Clark International Insurance Brokers (TSE: ACL) posted a 14% increase in revenue to $2.2 million for the six months to end September of this year compared with $1.9 million posted a year prior. Earnings before tax clocked in at $192,142 resulting in net earnings of $54,731 for the latest reporting six-month period. The company says it will continue its growth strategy through acquisition in the months ahead.

Hi-Alta Capital Inc.’s (TSE: HIA) revenue for the first nine months of 2001 rose by 19% to $17.3 million compared with $14.5 million for the same period in 2000. Net earnings rose by an impressive 39% to $674,900 against the $485,600 made in 2000. Earnings came in 50% higher year-on-year at 6 a share compared with 4 share for last year. Hi-Alta expects to increase its number of offices within the network from the current 35 to 50 locations by the end of the first quarter of 2002.

It is a case of good news versus bad news for Vector Intermediaries (CDNX: VTE) in the third quarter of 2001, with the network consolidator posting a net loss of $1.5 million, or 10 a share. However, this is a vast improvement on third-quarter 2000’s loss of $1.6 million, equal to 21 a share.

Hub International Ltd. (TSE: HBG) increased net earnings for the third quarter of 2001 by 71% to $3.2 million compared with $1.9 million made in 2000. Earnings on a fully diluted basis amounted to 15 a share against 10 a share shown at the end of September 2000. Hub attributes the gain in revenue and net earnings for the latest quarterly report to “the positive impact of acquisitions completed during the last 12 months”.