HUB International Limited announced today that one of its subsidiaries has entered into a definitive agreement to acquire all of the stock of Totten Insurance Group Inc. (Totten), a Canadian specialty insurance wholesaler that develops niche products and provides solutions for unusual lines of business. Totten, together with HUB Ontario's existing wholesale companies, will operate as a separate HUB in concert with HUB International's other Canadian wholesale operations across Canada.
Formed in October 2002, Totten has established strong relationships with both domestic and international markets and consists of a team of professionals having decades of experience.
"Aligning ourselves with HUB gives us the financial base to explore more opportunities in the wholesale intermediary field," said H. Ross Totten, FCIP, CCIB, president and chief executive officer of Totten. "HUB International's resources coupled with our independence as a separate HUB allow us to offer our brokers and markets a broader range of niche products going forward as a combined operation."
The current wholesale operations of HUB International Ontario Limited (HUB Ontario), The Wholesale Insurance Group and Cross Border Underwriting Services Inc., will merge with the newly acquired entity, and moving forward, the combined business will operate as Totten Insurance Group. H. Ross Totten will become the president and chief executive officer of the newly formed HUB. The amalgamation will result in a $58 million in premium wholesale operation with offices located in Brampton, Moncton, Mississauga, Winnipeg and London, Ontario. The staff of approximately 75, including all operations, will remain in place.
"The wholesale intermediary insurance business has a significantly different focus than a retail property and casualty brokerage," said Dennis Pauls, president and chief executive officer of HUB Ontario. "Conducting the wholesale operations in a separate HUB will allow HUB Ontario to focus on building its retail operations and dedicating more time and energy to its core business."
The closing of the transaction is subject to various customary closing conditions. The parties expect to close the transaction during the third quarter of 2007.
Headquartered in Chicago, IL, HUB International Limited is a leading North American insurance brokerage that provides a broad array of property and casualty, reinsurance, life and health, employee benefits, investment and risk management products and services through offices located in the United States and Canada.
This press release may contain words such as "anticipate," "believe," "expect," "intend," "plan," "project," and other similar words and phrases that indicate forward-looking statements. Forward-looking statements reflect our current expectations regarding, among other things, our future growth, results of operations, cash flows, performance and business prospects, and opportunities. Such statements are based on information currently available to us as well as assumptions regarding future events. Consequently, such forward-looking statements are inherently subject to risks and uncertainties related to industry, financial, legal, regulatory conditions and events and other factors, any of which could cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects, and opportunities to differ materially from those expressed in, or implied by, such forward-looking statements. We therefore caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date of this press release. We undertake no obligation to update any statement contained herein, except as may be required law.