Dec 5, 2007 – HKMB International Insurance Brokers to combine with Hub International


International Insurance Brokers (HKMB) and Hub International Limited announced
today that they have entered into a definitive agreement pursuant to which HKMB will
join with HUB International. HKMB will become a new regional platform (hub) and
carry on business as HKMB Hub International from its existing offices in Toronto,
Ontario. HKMBís existing ownership group will continue as equity partners in the
combined firm.
HKMB Hub Internationalís offerings to clients and colleagues will be impressive, with
greatly enhanced combined resources and leverage in the Canadian marketplace.
Founded in 1888, HKMB International is a leading Canadian commercial insurance
brokerage offering the full spectrum ofinsurance and related services,including risk
management advice, property/casualty, group benefits and personal lines. Its diversified
customer base extends across all major industry sectors. HKMB International employs
approximately 240 people. HKMBís Vancouver office will be consolidated into HUB
International TOS.
“The combination with HKMB will add great depth and talent to our Canadian
operations,” said Martin P. Hughes, chief executive officer and chairman of HUB
International. “We have the advantage of knowing the leadership at HKMB very well
and they will retain significant equity in the combined entity. The reputation of HKMB
is impeccable, not only in the Canadian insurance community, but also in the U.S. and
abroad. Like HUB International, HKMB has grown rapidly through the efforts of a very
dedicated team of professionals who are passionate about serving the needs of their
clients,” Hughes continued. “We admire their approach to business and respect their
management style. HKMB is going to be a great fit with us, and we couldnít be happier
to have them joining our growing corporate family.”
“HKMB’s corporate mission has always been to advocate our clients’ interests and to
provide them with the best opportunity to address their exposure to risk,” said Gregory
Belton, president of HKMB. “By combining with HUB International, our sales and
service teams will be able to leverage and access an even wider range of products and
services.” Neil Morrison, chief executive of HKMB, added “We at HKMB
International are all looking forward to the opportunities that will open up to us from a
significantly larger footprint. We are excited to work with the HUB management team,
and in particular Dennis Pauls and our other counterparts not only here in Ontario but
also throughout Canada and the United States. Our goal of growth for our clients, our
people, our partners and our business aligns fully with HUB’s values and vision for the
Operationally, HKMB is organized by industry specific practice areas that allow clients
access to in-depth knowledge and experience, resulting in better servicing of insurance
needs and management of insurance costs. Practice areas include owner-managed firms,
automotive dealerships, not-for-profit and charitable organizations, construction and
engineering firms, food services providers, franchisors, technology firms, hospitality
providers, houses of worship, leasing and lending institutions, life sciences/bio-tech
firms, long term care facilities, private equity investors, investment dealers,
governmental institutions, real estate developers, transportation firms and sports and
entertainment. HKMB also fields a claims team that is dedicated to championing client
It is anticipated that upon completion of the transaction, scheduled to occur in early
January, 2008, HUBís combined Ontario operations will generate more than $100
million in total annualized revenue and total Canadian premium volume will be exceed
$2.1 billion. HUBís existing regional hub in Ontario, Hub International Ontario, will
continue to be led by Dennis Pauls.
Completion of the transaction is subject to the usual closing conditions. Terms of the
transaction were not disclosed.
Founded in 1998 and 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 more than 250 offices located in the United
States and Canada.
Mystic Capital Advisors Group, LLC provided transaction advisory services to Hub
International. For more information on Mystic Capital, please contact Kevin P.
Donoghue at 212-251-0972 or visit www.mysticcapital.com
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