Mar 15, 2007 – Hub International acquires insurance unit of BNCCORP, Inc.
Hub International to Acquire One of the Largest Arizona-Based Insurance Brokers
CHICAGO–(BUSINESS WIRE)–March 15, 2007–Hub International Limited
(NYSE:HBG) (TSX:HBG) announced today that it has agreed to acquire substantially all
of the assets of BNC Insurance Services, Inc., one of the largest Arizona-based insurance
brokers. The brokerage, which does business as Milne & BNC Insurance Services, has
approximately $19 million in revenue. This operation will become a new regional
platform (hub) doing business as Hub International Milne (HUB Milne).
Based in Phoenix, Milne & BNC Insurance has 85 employees at offices in Phoenix,
Prescott Valley, Cottonwood and Tucson, Arizona; Bismarck, Mandan and Linton, North
Dakota; and Englewood, Colorado. Richard Milne, president of Milne & BNC Insurance,
will become president of HUB Milne’s Arizona-based operations. The North Dakota
offices will be folded into HUB Mountain States and the Colorado office will be folded
into HUB Southwest.
“The BNC acquisition presents a tremendous market opportunity to become established
in the Phoenix metropolitan area, one of the fastest growing communities in the United
States,” said Martin P. Hughes, Hub International’s chairman and chief executive officer.
“It also presents a promising opportunity for growth for our HUB Southwest and HUB
Mountain States operations through collaboration and an extended reach in the west
region,” Hughes added.
The brokerage was founded in 1990 and purchased in 2002 by BNC National Bank, a
subsidiary of BNCCORP, Inc. (NASDAQ:BNCC). The BNC Insurance acquisition will
mark the fourth major purchase by Hub International of a large brokerage operation from
a financial institution.
“Getting back to our core business and joining HUB will make us a more valuable
resource for our clients and business partners,” said Milne. “The HUB transaction also
will allow our clients to enjoy expanded product offerings and specialized insurance
The transaction, which is structured as an asset purchase, is subject to BNCCORP
shareholder approval, as well as customary closing conditions. It is expected to close at
the end of the second quarter or the beginning of 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.
Mystic Capital Advisors Group, LLC provided transaction advisory services to Hub
For more information on Mystic Capital, please contact Kevin P. Donoghue at 212-251-
0972 or visit www.mysticcapital.com
# # #