Hub International Completes Sale Of Underwriting Units; Will Continue Management Of Old Lyme Insurance Companies


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 Add Title:  Hub International Completes Sale Of Underwriting Units; Will Continue Management Of Old Lyme Insurance Companies
 Location:  Chicago
 Date:    2002-05-30  
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Hub International Limited (Hub) announced today that it has completed the previously announced sale of its underwriting subsidiaries, Old Lyme Insurance Company of Rhode Island, Inc. and Old Lyme Insurance Company, Ltd. (Old Lyme) to Fairfax, Inc. (Fairfax). Fairfax is a subsidiary of Fairfax Financial Holdings Limited (Toronto Stock Exchange symbol: FFH), Hub's largest shareholder.

Hub, through its Kaye Group Inc. (Kaye) subsidiaries, including its underwriting manager, Program Brokerage Corporation, will continue both to manage Old Lyme and to operate Kaye's Claims Administration Corporation unit (CAC), which is not being sold. Both Old Lyme and CAC have been managed by Kaye subsidiaries since they were formed over 20 years ago. Old Lyme has consistently maintained a combined loss and expense ratio superior to property and casualty industry norms.

The sale for Old Lymes' book value as of December 31, 2001 of approximately US$42.8 million plus interest of $.7 million, will be used to pay down debt and represents a gain of approximately US$2.6 million to Hub under Canadian generally accepted accounting principles.

Martin P. Hughes, Chairman and Chief Executive Officer of Hub, and Bruce D. Guthart, President of Hub's United States Operations and President and Chief Executive Officer of Kaye, in a joint statement, reiterated that the sale of Old Lyme aligns Hub's underwriting arrangement with that of other major public brokers: participation in underwriting opportunities by affiliations or contingency agreements rather than through direct ownership of insurance companies.

Hub International is a leading North American insurance brokerage providing a broad array of property and casualty, life and health, employee benefits, investment and risk management products and services.

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Hub International Limited
W. Kirk James
Vice President, Secretary and General Counsel
(312) 279-4881
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 SOURCE :   Hub International Limited