1133016--3/13/2006--HUB_INTERNATIONAL

related topics

{system, service, information}

{stock, price, operating}

{acquisition, growth, future}

{loan, real, estate}

{regulation, government, change}

{stock, price, share}

{competitive, industry, competition}

{tax, income, asset}

{operation, international, foreign}

{operation, natural, condition}

{personnel, key, retain}

{financial, litigation, operation}

Insurance company contingent commissions and volume overrides are less predictable than normal commissions, which impairs our ability to forecast the amount of such revenue that we will receive and may negatively impact our operating results. If we fail to comply with regulatory requirements for insurance brokerages, we may not be able to conduct our business. We may be unsuccessful in identifying and acquiring suitable acquisition candidates, which could impede our growth and ability to remain competitive in our industry. Our continued growth is partly based on our ability to successfully integrate acquired brokerages and our failure to do so may have an adverse effect on our revenue and expenses. Insurance brokerages that we have acquired may have liabilities that we are not aware of and may not be as profitable as we expect them to be. If we fail to obtain additional financing for acquisitions, we may be unable to expand our business. We cannot accurately forecast our commission revenue because our commissions depend on premium rates charged by insurance companies, which historically have varied and are difficult to predict. Any declines in premiums may adversely impact our profitability. Proposed tort reform legislation in the United States, if enacted, could decrease demand for liability insurance, thereby reducing our commission revenue. A substantial portion of our total assets are represented by goodwill and other intangible assets as a result of our acquisitions and under accounting standards, we may be required to write down the value of our goodwill and other intangible assets. The loss of members of our senior management or a significant number of our brokers could negatively affect our financial plans, growth, marketing and other objectives. Competition in our industry is intense, and if we are unable to compete effectively, we may lose market share and our business may be materially adversely affected. We do business with certain subsidiaries of our largest shareholder and if a conflict of interest were to arise it may not be resolved in our favor and could adversely affect our revenue. We depend on our information processing systems. Interruption or loss of our information processing systems could have a material adverse effect on our business. Privacy legislation may impede our ability to utilize our customer database as a means to generate new sales. The security of the databases that contain our customers personal information may be breached which could subject us to litigation or adverse publicity. Our corporate structure and strategy of operating through decentralized brokerages may make it more difficult for us to become aware of and respond to adverse operating or financial developments at our brokerages. Our profitability and liquidity may be materially adversely affected by errors and omissions. Risks Related to Our Common Shares The price of our common shares may fluctuate substantially, which could negatively affect the holders of our common shares. Significant fluctuation in the market price of our common shares could result in securities class action claims against us. Our largest shareholder may substantially influence certain actions requiring shareholder approval.

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1133016--3/13/2006--HUB_INTERNATIONAL_LTD