Hub purchased Talbot from Safeco insurance for $90 million in cash. The Albuquerque, N.M.-based Talbot will be a regional "hub" for the firm covering the Southwest and Western regions.

Talbot is primarily a property-casualty business, distributing insurance and investment products through independent agents, broker/dealers and financial institutions. The firm's sales of annuities and other financial products account for approximately 10 percent of revenue.

The acquisition, Hub said, was accomplished through its purchase of a 70 percent interest in Satellite Acquisition Corporation, a corporation formed by Randy Talbot and senior management at Talbot. The proceeds from the investment were used to purchase the firm from Safeco.

Hub said it would purchase the remaining 30 percent interest from Talbot management over the next three years. Hub said it has the right to use both restricted and unrestricted shares of its stock in the purchase.

Hub said the deal would be recorded as a compensation expense and would result in the reduction of some earnings. It expects the net expense for non-cash stock-based compensation to Talbot, based on 2003 earnings, will be approximately $16 million in 2004; $8 million in 2005; and $2 million in 2006.

If Talbot management exceeds specific performance goals, Hub said, the total compensation impact would increase by $2.10 for each additional dollar of EBITA (earnings before interest, taxes and amortization) that Talbot generates.

This week, Hub also announced the acquisition of B. & D.A. Weisburger, Inc. of White Plains, N.Y., by its New York-based wholesale insurance division, Program Brokerage Corp.

Terms of the deal involved an undisclosed amount of cash and Hub stock.

Family owned since its founding in 1915, Weisburger offers pest control and lawn care coverage programs to other agents and brokers as well as retail clients. The firm, with annual revenues of approximately $3 million, will remain in White Plains.

Michael A. Weisburger, president and majority owner of the business, will become a vice president at PBC, reporting to Marc I. Cohen, PBC President, Hub said.