MGA consolidation continues with another acquisition

by Nicolas Heffernan07 Apr 2015
Hub Financial Inc. has acquired the assets of Cortex Financial, a Thornhill, Ont.-based MGA.

The acquisition broadens Hub Financial’s footprint in Canada and its reach to financial advisors and insurance brokers seeking multi-fund insurance and risk solutions while maintaining their independence.

The business will be managed out of Hub Financial’s Woodbridge, Ont. office.

Cortex Financial sells a range of products including life and critical illness insurance, retirement and estate planning, registered plans and health and travel coverage.

After starting out with 11 brokerages in 1998, Hub International has added over 350 new branches.

The move continues Hub’s, and the industry’s in general, aggressive pace of identifying and acquiring brokers.

“I think we’ve got an industry that’s consolidating very, very quickly now,” said Simon Tomlinson, CEO of Bluesun. “We’re getting into a period of time where we’re going to see super MGAs. I think that creates some interesting new possibilities as it relates to fixing the supply chain because there are more enterprise size distribution companies emerging.”

For many in the industry acquisitions like this have almost become the norm.

“In Canada we continue to see the MGA market consolidate,” said Tony Garcia, President and CEO of Foresters. “Larger MGA distribution systems are buying up or consolidating smaller agencies into their broader system to be able to give a better level of training, support and access to carriers.”