Hub International Limited insurance brokerage said it is sellingits San Francisco-based Talbot Financial hub to a buyout group thatincludes four members of Talbot management.

Terms of the deal were not released.

The Chicago-based broker said the Talbot Financial unit, whichsells securities, is one of four hubs created after the acquisitionof Talbot from Safeco in 2004 for $90 million.

Hub said the unit was classified as a discontinued operationduring the third quarter of 2005.

With 40 employees and revenue of approximately $5 million,Talbot Financial provides a broad range of financial services tobanks and financial institutions.

“We are greatly encouraged by the opportunity to acquire thebusiness we have been managing and pursue new growth opportunitiesin our markets,” said John Brackett, president of Talbot Financial,in a statement.

Martin P. Hughes, chairman and chief executive officer of HubInternational, said the sale of the specialty hub will not have asignificant impact on Hub's growth opportunities or strategies. Henoted that Talbot Financial is a specialty hub with relativelylittle cross-selling or other collaborative opportunities withHub's other brokerages.

A company spokesman said Talbot Financial differs from the restof Talbot and Hub in that Talbot Financial specializes in sellingsecurities, annuities and other investment vehicles, unlike theinsurance brokerage firm. He said the sale would not have asignificant impact on the payout from earnings to Talbotmanagement.

As part of the deal to purchase Talbot from Safeco, Hub said itexpects to pay between $52 million and $55 million to Talbotmanagement over a three-year period under the performance paymentagreement or earnout.

Hub paid $16.4 million in cash to 70 employees in September, andhas the option to pay the employees in cash or common shares forthe balance of the agreement.

Investors appeared to be reacting positively to the news, as thestock rose 40 cents to a high of $26.48 a share, but dropped backto $26.21 by mid-day.