Intercare Insurance Solutions, a San Diego-based business insurance brokerage, said it was acquired by Hub International Limited, based in Chicago, for an undisclosed price.
“The health care landscape has changed significantly in the last few years,” said Intercare President and CEO Mike Barone. “We felt our organization combining with Hub will provide our clients with superior services in the marketplace.”
Hub International is a global insurance brokerage that has more than 6,000 employees, more than $1 billion in annual revenue, and was ranked as the 10th largest insurance broker in the world, Barone said.
Barone founded Intercare in 2002 and grew it within 18 months to four people and $350,000 in revenue. Today, the brokerage has 85 employees. Barone declined to reveal last year’s revenue but said it more than doubled from 2009 when he told the Business Journal it was about $10 million.
Under the new arrangement, Hub retains Intercare’s staff including senior management, and its offices in San Diego and Irvine. Barone will be president of the unit that is part of Hub’s California operations, and reports to Kirk Christ, president of Hub International of California.
Intercare is known for its specialized insurance products that allow midsized companies to provide innovative benefits to their employees. The firm has received national recognition for its corporate wellness and cost containment strategies, according to Intercare.
That expertise should augur well for the Hub organization as more businesses deal with the ongoing impacts of health care reform, Barone said.
“The worst is coming in 2014,” he said. “Cost increases for most employers will more than double and could triple next year because of all the changes from Obamacare.”