[Breaking News] Weisburger Insurance Sold To Hub International

Hub International Limited announced July 1 that its New York-based wholesale insurance division, Program Brokerage Corporation, has acquired, for an undisclosed amount of cash and Hub stock, the assets of B. & D.A. Weisburger, Inc. of White Plains, N.Y. Weisburger, family owned since its founding in 1915, offers pest control and lawn care coverage programs to other agents and brokers, as well as retail clients.

Weisburger Insurance, a private insurance provider for almost 90 years, has carved out an impressive niche providing services to the pest management and lawn care industries, which are filled with small- to mid-size companies, many of which are family owned. But as Weisburger Insurance continued its growth, the company realized it needed more resources in order to enhance its service offerings.

Michael Weisburger, president of Weisburger Insurance, told PCT that now was the right time to sell because Weisburger found a business partner (Hub International) with whom they share many of the same business philosophies. "They have a long history of expertise in creating and administering insurance programs, and they’re a young, dynamic organization that has the entrepreneurial style and creativity that I think matches up very well with Weisburger Insurance," he said.

B. & D.A. Weisburger, with annual revenues of approximately $3 million, will remain in White Plains. Michael A. Weisburger, president, and majority owner of the business, will become a vice president at PBC, reporting to Marc I. Cohen, PBC president.

"This is an interesting and very promising specialty coverage discipline we are adding to PBC’s capabilities," said Martin P. Hughes, Hub Chairman and chief executive officer. He continued, "We are always looking for opportunities to expand the offerings we have available to our retail producer network and middle market clients, and finding a firm with such a fine reputation in the industries it serves and a history of almost 90 years is particularly gratifying. We welcome Michael and his staff to our PBC group."

Weisburger said, "We are very proud of the long family tradition our business represents. Now joining with PBC will enable us to tap the many additional resources of an excellent program specialist that has its own impressive history of growth and innovation. I look forward to working with the talented management at PBC and continuing to serve our clients with the highest standards of professionalism."

INDUSTRY REACTION. Just what level of service Weisburger will provide under this new arrangement was on the minds of many PCOs following last month’s announcement. "The great thing about the Weisburgers and Charlie Carnesi is that they possess exceptional people skills," said Brian Van Dam, president of Fulton Services, North Miami Beach, Fla. "They are accessible and if you had a problem, they would get involved to help resolve it. Will that level of service still be available at the new company?"

Michael Weisburger stressed that neither he nor his father, Mark, will be retiring and that it is "business as usual" for both employees and customers. "The same level of customer service they’ve become accustomed to in the past shouldn’t change," he said. "The White Plains office is still operating as usual. We just hope that in a relatively short period of time that we can offer a lot of new products and services, and enhance our existing product line."

Jim McHale, Jr., president of J.P. McHale Pest Management Inc., Buchanan, N.Y., says his company outgrew Weisburger Insurance and that this new partnership will allow Weisburger to better compete for the business of larger companies. "Weisburger is good with small- to mid-size companies because of the personal attention he provides," McHale said. "This partnership will allow Michael to provide better service to our industry and allow him to be more competitive for companies of my size. He’ll be able to reap some benefits of all his hard work and be able to take some risk off the table. The partnership will provide for better synergies and better service overall."

Hal Stein, president of Crane Pest Control, San Francisco, and a longtime Weisburger client, says it made sense for Weisburger to sell, noting challenges inherent with Weisburger’s continued complex growth in an evolving industry. "In this case, insurance needs are so complex and critical that merger with a larger entity with more comprehensive clout and markets may be necessary."

Weisburger has the endorsement of the National Pest Management Association and has also been chosen by the Professional Lawn Care Association of America to provide insurance services to its members.

"We congratulate B. & D. A. Weisburger Insurance Inc. on the recent sale of their business," said Rob Lederer, NPMA executive vice president. "We have been assured that their commitment to the industry and to the association will be stronger than ever."

Hub International’s eleven large "hub" brokerages have significant market presence in their geographic regions in the U.S. and Canada. Each hub provides insurance brokerage services and manages the various other Hub International offices in its territory. The hub brokerages are responsible for growth through sales, service and fold-in acquisitions. The various hub offices report to the head office, located in Chicago, which, in addition to monitoring the activity of each hub, retains responsibility for identifying and acquiring additional hub brokerages.

Headquartered in Chicago, Hub International is a leading North American insurance brokerage that 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.

The author is Internet editor for www.pctonline.com. He can be reached at bharbison@giemedia.com.