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Hub completes purchase of PLI


October 3, 2005   by Canadian Underwriter


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Chicago-based Hub International Limited (NYSE/TSX:HBG) has completed its purchase of Personal Lines Insurance Brokerage Inc. (PLI) from The Chubb Corporation.
The acquisition expands Hub’s position in personal insurance across most of the United States and grows personal lines to nearly 20% of Hub’s consolidated revenue.
In 2004, PLI generated approximately $27 million in revenue, while Hub’s personal lines revenue totalled $25 million in the United States and $70 million on a consolidated basis, including Canada.
“We welcome a very talented team of employees and an attractive base of clients to Hub with this acquisition,” said Martin P. Hughes, chairman and CEO of Hub International. “As we integrate PLI operations within our regional hubs, we anticipate more choices for clients, new growth opportunities and significant operating efficiencies.”
Hughes noted Hub and PLI offices share overlapping operations in regions where PLI currently derives approximately 53% of its revenue, leading to consolidation and other cost-saving opportunities.
Hub named PLI leaders Jim Kane and Kathleen Zortman to the positions of president and chief operating officer, respectively, for Hub International Personal Insurance in the United States. Their leadership roles will include working with all personal insurance specialists at Hub’s regional offices. Kane will join Hub’s executive committee.
In conjunction with the acquisition, Hub is establishing a performance and retention incentive program for PLI employees. Under the program, PLI employees who remain with Hub for five years will receive an aggregate of approximately 134,000 restricted share units, each convertible into one Hub common share on the fifth anniversary date of the acquisition, subject to the attainment of certain revenue and profitability goals.
PLI serves high net worth individuals with personal insurance brokerage, offering coverage options from more than 100 insurance carriers. PLI’s staff is currently based in 18 offices in both the U.S. and Canada, and is licensed to handle insurance in all 50 states. Founded in 1982, the company serves approximately 44,000 clients.


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