Chicago-based Hub International Limited reported revenues rose 12.5 percent on cost cutting and higher-than-anticipated contingent fee income, but diluted net income remained almost unchanged.
"We are off to a solid start in 2006, with measurable progress on all fronts," said Martin P. Hughes, the brokerage's chairman and chief executive officer.
"Revenue is up, net earnings are stronger, acquisitions are being integrated smoothly and costs are under control. Our strategies for long-term growth are gaining momentum," said Mr. Hughes.
Reporting late last week, Hub said diluted net income remained flat at $16.9 million, with diluted net earnings per share down slightly from 47 cents a share to 46 cents. Revenues rose $14.9 million, from $119 million to $134 million.
Looking at the remainder of the year, Mr. Hughes said, "We expect continued declines in premium levels in the second half of 2006; however, that should not preclude our ability to grow organically."
Hub said acquisition activity remained active. During 2005, Hub acquired 15 brokerages with aggregate annualized revenue of approximately $45.9 million. In the first quarter of 2006, Hub acquired five brokerages with aggregate annualized revenue of $5.1 million.
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