Insurance broker Hub International Ltd. is reporting a stronger profit for the fourth quarter ended Dec. 31, 2003.

The firm, which is based in Chicago, said quarterly profit rose on a strong Canadian dollar and expansion of its business into British Columbia.

The company which is based said net earnings were US$10.6 million or US33¢ per share, compared with US$8.3 million or US26¢ a share a year earlier.


For the year, net earnings increased 24% to US$36.5 million as revenue grew 30% to US$286.4 million. Diluted earnings per share for the year rose 8% to US$1.14 per share.

Hub’s brokerages posted a combined organic growth rate of 12% for the full year and 10% in the fourth quarter. Foreign exchange benefits from Hub’s Canadian operations contributed 5 percentage points of the organic growth rate in 2003 and 7 percentage points in the fourth quarter.

Martin Hughes, Hub’s chairman and CEO, described the growth as encouraging, although he noted that the company did not attain an increase in net margin in 2003 and did not achieve its goals for acquisitions.

Hughes said the company benefited in 2003 from organic growth, contributions from brokerages acquired in 2002 and the currency exchange benefits of a strengthening Canadian dollar. Highlights included increased penetration of the commercial middle market in British Columbia, expansion of the professional liability practice based in Chicago and growth of wholesale brokerage operations in New York and Toronto.

The company declared a quarterly dividend of US5¢ per share.

Hub International provides a broad array of property and casualty, life and health, employee benefits, investment and risk management products and services through offices located in the United States and Canada.