New Arizona Hub Will Provide Platform for Further Sunbelt Growth
CHICAGO, 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 expertise.”
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.
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. www.hubinternational.com