Behind the scenes of Hub’s latest Canadian acquisition

In a bid to shore up its personal and commercial insurance capabilities, Hub International Limited has acquired the assets of Quebec-based D’Onofrio Insurance Inc.

Located in Laval, Que., D’Onofrio Insurance is an independent brokerage offering personal and commercial insurance to clients in the region, Hub said last month, when the acquisition was announced.

Terms of the transaction were not disclosed, but Chicago-headquartered Hub said the firm will be referred to as D’Onofrio Insurance, a Hub International company. The agency sells roughly 60% commercial lines business and 40% personal lines.

Owner Marco D’Onofrio and the D’Onofrio Insurance team will join Hub Quebec.

Marco D’Onofrio is the brokerage’s senior vice president, account executive and commercial insurance broker. He told Canadian Underwriter Monday he started off with the family business in 1990, 14 years after it was established in 1976 under the name Group D’Onofrio.

“After my dad passed away in 2007, I tried to work with my siblings, and, as with many family businesses, it proved to be too challenging for me,” D’Onofrio told CU. “The corporation’s direction no longer lined up with my vision or values, so I decided to part and bravely started on my own on May 2, 2016.”

At that time, D’Onofrio was president of Group D’Onofrio. He told his staff he would be leaving the family business after 26 years. It has been sold twice since his departure.

Damage insurance broker Marisa Perri, who had been with the family business since about 1994, told D’Onofrio she would also leave, he said.

“I took the opportunity to offer her a job, and so D’Onofrio Insurance was born,” he said. “Marisa Perri and I worked an additional seven-plus years together and nearly tripled our volume from 2016.”

Throughout its growth, D’Onofrio attempted to “hire someone with grassroot values and a passion for insurance,” which proved impossible, D’Onofrio said. It was difficult to attract new candidates without group insurance or multiple employee benefits. “We also have a very diverse client base, where speaking two or more languages is an absolute requirement and not an option.”

Adding to the stress, it was nearly impossible to find time off (save the weekends) because there were “only two to run the entire office,” D’Onofrio told CU. “We had become the victims of our success, and a clear vulnerability issue should either one of us had become ill.

“Marisa focused on personal lines while I managed the commercial lines files,” he said. “Both had to run in tandem. If one side fell, the continuity would have proved excessively challenging.

“All things considered, I came to the conclusion that taking a responsible decision for the sake of our clients, while still in great health and with a thriving business, was the rational and logical thing to do.”

Last year, “underwriting regulation pitfalls” existed for clients who were conducting business or exposures in other provinces or states, D’Onofrio added.

For example, for trucking files, brokers must be licensed in the province or state where the exposure exists. “Given that truckers constantly [travel beyond] borders, complying with certification in all of their territories would have proven next to impossible,” D’Onofrio said.

Joining Hub instantly settled these types of regulatory compliance matters, he said, calling the move a “godsend. With a wave of the wand, we were suddenly fully certified and backed by an unparalleled team of passionate players. I immediately knew that my decision was sound for our clients, Marisa and myself.”

On Monday, Hub also announced it had named Jean-François Beaulieu as president of Hub Quebec, effective Jan. 1, 2024. Stephen Blais, who was president and CEO of Hub Quebec, will continue his responsibilities as CEO. Those responsibilities include working closely with the local executive management team to develop and implement initiatives to grow the business both organically and through M&A, to attract, develop and retain top talent, and to improve organizational efficiency.

Beaulieu joined Hub in 2004. His areas of expertise are real estate and hospitality. As chief sales officer, Beaulieu was responsible for organic growth and client retention for Quebec. He also led Hub’s large commercial department to help grow the practice.

Prior to joining Hub, Beaulieu was an account manager at Marsh, followed by assistant vice president and account executive at Willis.

 

Feature image by iStock.com/Tirachard