Hub International Limited said the brokerage plans to acquire Totten Insurance Group Inc., a Canadian specialty insurance wholesaler. Terms of the deal were not released.
Closing of the transaction is expected during the third quarter of this year, Chicago-based Hub said.
Formed in October 2002, Totten develops niche products and provides solutions for unusual lines of business.
The current wholesale operations of Hub International Ontario Limited, The Wholesale Insurance Group and Cross Border Underwriting Services Inc. will merge with Totten and operate as Totten Insurance Group. H. Ross Totten, president and chief executive officer of Totten, will become the president and CEO of the newly formed group.
The merger will result in $58 million in premium wholesale operation with offices located in Brampton, Moncton, Mississauga, Winnipeg and London, Ontario, Canada. 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 [group] will allow Hub Ontario to focus on building its retail operations and dedicating more time and energy to its core business.”
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