Hub International acquires Morneau Shepell's benefits consulting practice
Chicago-based insurance brokerage Hub International has acquired the benefits consulting practice of Morneau Shepell, a Toronto-based HR consultancy. The deal is valued at $70 million.
"Hub has been bullish on its strategy to provide comprehensive end-to-end benefits services that address the challenges Canadian employers are facing to achieve their recruiting, retention and cost management goals," said Tina Osen, president of Hub International Canada. "With Morneau Shepell's benefits consulting practice, Hub will deliver highly differentiated services across all five lines of our business – property and casualty, employee benefits, retirement, risk services and personal lines – to clients large and small, in-country and cross border."
The transaction adds extensive actuarial services to Hub’s employee benefits solution. The global firm’s existing benefits practice solutions include pharmacy design, total health strategies, retirement plan design, communications, and digital benefits platform solutions.
Morneau Shepell CEO Stephen Liptrap said the divestment was made following a comprehensive review. “The benefits consulting business is a strong, profitable asset and a great fit for Hub,” he said. “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.”
Morneau Shepell’s remaining technology-enabled HR services include employee and family assistance, health and wellness, recognition, pension and benefits administration, retirement consulting, actuarial and investment services.
The sold-off benefits consulting practice provides tailored solutions in actuarial services, integrated data analytics, and organizational health consulting to mainly large organizations.
The acquisition also marked the start of a partnership wherein Hub will be a preferred provider for benefits consulting services for Morneau Shepell, while Hub will add Morneau Shepell as a key partner for employee well-being services.
JP Girard, health & benefits consulting practice leader at Morneau Shepell, joins Hub as EVP of benefits consulting, national accounts at Hub. He will remain based in Halifax.
Hub has aggressively expanded its Canadian employee benefits solution since 2018, acquiring 28 brokerages and growing the practice by more than 20 offices and 400+ staff. The firm’s benefits consultancy acquisitions in 2019 included Winnipeg-based W.R. Carey, Saskatoon-based Regency Advisory Corporation, and Edmonton-based BenefitLink Resource Group.
