Hub Drops Out Of Near North Purchase
By Mark E. Ruquet
NU Online News Service, Aug. 18, 2:30 p.m. EDT?Hub International Ltd. said on Friday that it has dropped out of negotiations to purchase Near North National Group.
Hub had previously announced a proposal to purchase the troubled insurance firm on July 25.
"Although we had strong interest in this acquisition, we were unable to negotiate terms that match our investment discipline and suit our structural objectives," said Martin P. Hughes, Hub's chairman and chief executive officer, in a statement. "Hub continues to pursue other acquisitions and we believe ample opportunities exist to acquire high quality brokerage firms."
A Near North spokesperson would only say the firm was "very disappointed" with Hub's decision.
Near North has been in trouble ever since the indictment of its founder and head, Michael Segal, on charges of allegedly embezzling more than $20 million from a premium trust fund account over an 11-year period. In May, the firm was indicted on racketeering and mail fraud charges stemming from Mr. Segal's alleged actions.
Mr. Hughes confirmed rumors during an analyst's conference call in July, which indicated that the firm has lost a number of key employees and accounts since the indictments.
The most recent defection was William C. Bartholomay, who left his post as president of Near North to join Willis Group.
Both Near North and Hub are headquartered in Chicago.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
