##### Table of Contents











SECURITIES AND EXCHANGE COMMISSION




FORM 10-Q


QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF


THE SECURITIES EXCHANGE ACT OF 1934









HUB INTERNATIONAL LIMITED




|                                                                                     |  |                                               
|------------------------------------------------------------------------------------ |  | ----------------------------------------------
|Canada(State or other jurisdiction of incorporation or
    organization)             |  | 36-4412416(I.R.S. Employer Identification No.)
|                                                                                    
|55 East Jackson Boulevard, Chicago, Illinois(Address of principal executive offices) |  | 60604(Zip Code)                               

(877) 402-6601


Registrants telephone number, including area code




þ o




þ o




|                   |  |                                     
|------------------ |  | ------------------------------------
|ClassCommon Shares |  | Outstanding at May 2, 200530,621,865











---










HUB INTERNATIONAL LIMITED


INDEX


|                                                                                                        |  |      |    | 
|------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                        |  | Page |   
|                                                                                                        |  |      |   
|PART I. FINANCIAL
    INFORMATION                                                                       |  |      |    | 
|                                                                                                       
|Item 1. Financial Statements
    (Unaudited)                                                            |  |      | 3  | 
|                                                                                                       
|Consolidated Balance Sheets as of
    March 31, 2005 and December 31, 2004.                             |  |      | 3  | 
|                                                                                                       
|Consolidated Statements of Earnings for the
    three months ended March 31, 2005 and 2004.             |  |      | 4  | 
|                                                                                                       
|Consolidated Statements of Retained
    Earnings for the three months ended March 31, 2005 and
    2004 |  |      | 5  | 
|                                                                                                       
|Consolidated Statements of Cash Flows for
    the three months ended March 31, 2005 and 2004.           |  |      | 6  | 
|                                                                                                       
|Notes to Interim Consolidated Financial
    Statements                                                  |  |      | 7  | 
|                                                                                                       
|Item 2. Managements
    Discussion and Analysis of Financial Condition and Results
    of Operations   |  |      | 18 | 
|                                                                                                       
|Item 3. Quantitative and
    Qualitative Disclosures about Market Risk                                  |  |      | 29 | 
|                                                                                                       
|Item 4. Controls and
    Procedures                                                                     |  |      | 29 | 
|                                                                                                       
|PART II. OTHER INFORMATION                                                                              |  |      |    | 
|                                                                                                       
|Item 1. Legal
    Proceedings                                                                           |  |      | 29 | 
|                                                                                                       
|Item 2. Unregistered Sales of
    Equity Securities and Use of Proceeds                                 |  |      | 30 | 
|                                                                                                       
|Item 5. Other
    Information                                                                           |  |      | 30 | 
|                                                                                                       
|Item 6. Exhibits                                                                                        |  |      | 31 | 
|                                                                                                       
|SIGNATURE                                                                                               |  |      | 32 | 
|EX-10.1                                                                                                
|EX-31.1                                                                                                
|EX-31.2                                                                                                
|EX-32.1                                                                                                
|EX-32.2                                                                                                







|                           |                                
|-------------------------- | -------------------------------
|2HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents






PART I. FINANCIAL INFORMATION





Item 1. Financial Statements (Unaudited)


Hub International Limited





Consolidated Balance Sheets


As of March 31, 2005 and December 31, 2004


(in thousands of U.S. dollars)


|                                                  |  |             |         |  |      |   |         | 
|------------------------------------------------- |  | ----------- | ------- |  | ---- | - | ------- | 
|                                                  |  | 2005        |         |  | 2004 |  
|                                                  |  |             |         |  |      |  
|                                                  |  | (Unaudited) |         |  |     
|ASSETS                                            |  |             |         |  |      |   |         | 
|                                                 
|Current assets:                                   |  |             |         |  |      |   |         | 
|Cash and cash equivalents                         |  | $           | 112,892 |  |      | $ | 98,204  | 
|Trust cash                                        |  |             | 56,652  |  |      |   | 71,718  | 
|Accounts and other receivables                    |  |             | 127,463 |  |      |   | 162,841 | 
|Income taxes receivable                           |  |             | 6,967   |  |      |   | 6,208   | 
|Future income taxes                               |  |             | 5,568   |  |      |   | 3,901   | 
|Prepaid expenses                                  |  |             | 5,065   |  |      |   | 5,835   | 
|                                                  |  |             |         |  |      |  
|Total current assets                              |  |             | 314,607 |  |      |   | 348,707 | 
|Goodwill                                          |  |             | 375,013 |  |      |   | 376,676 | 
|Other intangible assets                           |  |             | 86,973  |  |      |   | 88,842  | 
|Property and equipment                            |  |             | 26,630  |  |      |   | 27,907  | 
|Future income taxes                               |  |             | 4,684   |  |      |   | 4,368   | 
|Other assets                                      |  |             | 8,970   |  |      |   | 11,035  | 
|                                                  |  |             |         |  |      |  
|Total assets                                      |  | $           | 816,877 |  |      | $ | 857,535 | 
|                                                  |  |             |         |  |      |  
|                                                 
|LIABILITIES AND SHAREHOLDERS EQUITY              |  |             |         |  |      |   |         | 
|                                                 
|Current liabilities:                              |  |             |         |  |      |   |         | 
|Accounts payable and accrued liabilities          |  | $           | 213,363 |  |      | $ | 271,843 | 
|Income taxes payable                              |  |             | 11,428  |  |      |   | 2,273   | 
|Future income taxes                               |  |             | 521     |  |      |   | 34      | 
|Current portion long-term debt and capital leases |  |             | 5,161   |  |      |   | 5,195   | 
|                                                  |  |             |         |  |      |  
|Total current liabilities                         |  |             | 230,473 |  |      |   | 279,345 | 
|                                                 
|Long-term debt and capital leases                 |  |             | 137,885 |  |      |   | 146,602 | 
|Subordinated convertible debentures               |  |             | 35,000  |  |      |   | 35,000  | 
|Future income taxes                               |  |             | 15,229  |  |      |   | 14,805  | 
|                                                  |  |             |         |  |      |  
|Total liabilities                                 |  |             | 418,587 |  |      |   | 475,752 | 
|                                                  |  |             |         |  |      |  
|                                                 
|Commitments and Contingencies                     |  |             |         |  |      |   |         | 
|                                                 
|Shareholders equity                              |  |             |         |  |      |   |         | 
|Share capital                                     |  |             | 260,418 |  |      |   | 259,617 | 
|Contributed surplus                               |  |             | 14,214  |  |      |   | 12,681  | 
|Cumulative translation account                    |  |             | 26,511  |  |      |   | 26,983  | 
|Retained earnings                                 |  |             | 97,147  |  |      |   | 82,502  | 
|                                                  |  |             |         |  |      |  
|Total shareholders equity                        |  |             | 398,290 |  |      |   | 381,783 | 
|                                                  |  |             |         |  |      |  
|Total liabilities and shareholders equity        |  | $           | 816,877 |  |      | $ | 857,535 | 
|                                                  |  |             |         |  |      |  

(the accompanying notes form an integral part of the interim
financial statements)






|                                |                            
|------------------------------- | ---------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 3



---



##### Table of Contents



Hub International Limited





Consolidated Statements of Earnings


For the three months ended March 31, 2005 and 2004


(in thousands of U.S. dollars, except per share amounts)


(Unaudited)


|                                                          |                                                                                    |      |         |        |      |   |        |        |  
|--------------------------------------------------------- | ---------------------------------------------------------------------------------- | ---- | ------- | ------ | ---- | - | ------ | ------ | -
|                                                          |                                                                                    | 2005 |         |        | 2004 |  
|                                                          |                                                                                    |      |         |        |      |  
|Revenue                                                   |                                                                                    |      |         |        |      |   |        |       
|                                                          | Commission income                                                                  |      | $       | 88,969 |      |   | $      | 61,585 |  
|                                                          | Contingent commissions and volume overrides                                        |      |         | 29,160 |      |   |        | 15,037 |  
|                                                          | Other                                                                              |      |         | 3,568  |      |   |        | 2,727  |  
|                                                          |                                                                                    |      |         |        |      |  
|                                                          |                                                                                    |      | 121,697 |        |      |   | 79,349 |       
|                                                          |                                                                                    |      |         |        |      |  
|Expenses                                                  |                                                                                    |      |         |        |      |   |        |       
|                                                          | Cash compensation                                                                  |      |         | 63,853 |      |   |        | 40,637 |  
|                                                          | Selling, occupancy and administration                                              |      |         | 20,053 |      |   |        | 15,553 |  
|                                                          | Depreciation                                                                       |      |         | 2,081  |      |   |        | 1,587  |  
|                                                          | Interest expense                                                                   |      |         | 2,403  |      |   |        | 1,660  |  
|                                                          | Intangible asset amortization                                                      |      |         | 1,859  |      |   |        | 781    |  
|                                                          | Non-cash stock based compensation                                                  |      |         | 8,998  |      |   |        | 1,614  |  
|                                                          | Gain on forgiveness of debt                                                        |      |         | (4,500 | )    |   |        |       |  
|                                                          | (Gain)/ loss on disposal of subsidiaries, property, equipment
    and other assets |      |         | (2,412 | )    |   |        | 38     |  
|                                                          | Loss on write-off of trademarks                                                    |      |         |       |      |   |        | 2,587  |  
|                                                          |                                                                                    |      |         |        |      |  
|                                                          |                                                                                    |      | 92,335  |        |      |   | 64,457 |       
|                                                          |                                                                                    |      |         |        |      |  
|                                                         
|Net earnings before income taxes                          |                                                                                    |      | 29,362  |        |      |   | 14,892 |       
|                                                          |                                                                                    |      |         |        |      |  
|Provision for income tax expense (benefit)                |                                                                                    |      |         |        |      |   |        |       
|                                                          | Current                                                                            |      |         | 13,854 |      |   |        | 6,738  |  
|                                                          | Future                                                                             |      |         | (972   | )    |   |        | (1,469 | )
|                                                          |                                                                                    |      |         |        |      |  
|                                                          |                                                                                    |      | 12,882  |        |      |   | 5,269  |       
|                                                          |                                                                                    |      |         |        |      |  
|Net earnings                                              |                                                                                    | $    | 16,480  |        |      | $ | 9,623  |       
|                                                          |                                                                                    |      |         |        |      |  
|                                                         
|Earnings per share                                        |                                                                                    |      |         |        |      |   |        |       
|                                                          | Basic                                                                              |      | $       | 0.54   |      |   | $      | 0.32   |  
|                                                          | Diluted                                                                            |      | $       | 0.47   |      |   | $      | 0.29   |  
|Weighted average shares outstanding
     Basic (000s)   |                                                                                    |      | 30,368  |        |      |   | 30,015 |       
|Weighted average shares outstanding
     Diluted (000s) |                                                                                    |      | 36,397  |        |      |   | 34,258 |       

(the accompanying notes form an integral part of the interim
financial statements)






|                           |                                
|-------------------------- | -------------------------------
|4HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents



Hub International Limited





Consolidated Statements of Retained Earnings


For the three months ended March 31, 2005 and 2004


(in thousands of U.S. dollars)


(Unaudited)


|                                        |  |      |        |   |      |   |        |  
|--------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | -
|                                        |  | 2005 |        |   | 2004 |  
|                                        |  |      |        |   |      |  
|Retained earnings  Beginning of period |  | $    | 82,502 |   |      | $ | 62,356 |  
|Net earnings                            |  |      | 16,480 |   |      |   | 9,623  |  
|Dividends                               |  |      | (1,835 | ) |      |   | (1,525 | )
|                                        |  |      |        |   |      |  
|Retained earnings  End of period       |  | $    | 97,147 |   |      | $ | 70,454 |  
|                                        |  |      |        |   |      |  

(the accompanying notes form an integral part of the interim
financial statements)






|                                |                            
|------------------------------- | ---------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 5



---



##### Table of Contents



Hub International Limited





Consolidated Statements of Cash Flows


For the three months ended March 31, 2005 and 2004


(in thousands of U.S. dollars)


(Unaudited)


|                                                                 |                                                                                   |      |         |         |      |   |        |         |  
|---------------------------------------------------------------- | --------------------------------------------------------------------------------- | ---- | ------- | ------- | ---- | - | ------ | ------- | -
|                                                                 |                                                                                   | 2005 |         |         | 2004 |  
|                                                                 |                                                                                   |      |         |         |      |  
|OPERATING ACTIVITIES                                             |                                                                                   |      |         |         |      |   |        |        
|Net earnings                                                     |                                                                                   | $    | 16,480  |         |      | $ | 9,623  |        
|Items not affecting cash                                         |                                                                                   |      |         |         |      |   |        |        
|                                                                 | Amortization and depreciation                                                     |      |         | 3,940   |      |   |        | 2,368   |  
|                                                                 | (Gain)/loss on disposal of subsidiaries, property, equipment and
    other assets |      |         | (2,412  | )    |   |        | 38      |  
|                                                                 | Non-cash stock based compensation                                                 |      |         | 8,998   |      |   |        | 1,614   |  
|                                                                 | Gain on forgiveness of debt                                                       |      |         | (4,500  | )    |   |        |        |  
|                                                                 | Loss on write-off of trademarks                                                   |      |         |        |      |   |        | 2,587   |  
|                                                                 | Future income taxes                                                               |      |         | (972    | )    |   |        | (1,469  | )
|Non-cash working capital items                                   |                                                                                   |      |         |         |      |   |        |        
|                                                                 | Trust cash                                                                        |      |         | 15,066  |      |   |        | 10,633  |  
|                                                                 | Accounts and other receivables                                                    |      |         | 33,113  |      |   |        | 50,021  |  
|                                                                 | Prepaid expenses                                                                  |      |         | 769     |      |   |        | 125     |  
|                                                                 | Accounts payable and accrued liabilities                                          |      |         | (65,817 | )    |   |        | (69,049 | )
|                                                                 | Other assets                                                                      |      |         | 129     |      |   |        | 128     |  
|                                                                 | Income taxes                                                                      |      |         | 8,398   |      |   |        | 1,387   |  
|                                                                 |                                                                                   |      |         |         |      |  
|Net cash flows from operating activities                         |                                                                                   |      | 13,192  |         |      |   | 8,006  |        
|                                                                 |                                                                                   |      |         |         |      |  
|                                                                
|INVESTING ACTIVITIES                                             |                                                                                   |      |         |         |      |   |        |        
|Property and equipment  purchases                               |                                                                                   |      | (936    | )       |      |   | (1,396 | )      
|Property and equipment  proceeds on sale                        |                                                                                   |      | 1       |         |      |   | 67     |        
|Purchase of subsidiaries, net of cash received                   |                                                                                   |      | (18     | )       |      |   | (257   | )      
|Sale of subsidiaries                                             |                                                                                   |      | 3,876   |         |      |   |       |        
|Other assets                                                     |                                                                                   |      | 4,399   |         |      |   | 560    |        
|                                                                 |                                                                                   |      |         |         |      |  
|Net cash flows from (used for) investing activities              |                                                                                   |      | 7,322   |         |      |   | (1,026 | )      
|                                                                 |                                                                                   |      |         |         |      |  
|                                                                
|FINANCING ACTIVITIES                                             |                                                                                   |      |         |         |      |   |        |        
|Long-term debt and capital leases  repayments                   |                                                                                   |      | (4,263  | )       |      |   | (1,015 | )      
|Proceeds from exercise of stock options                          |                                                                                   |      | 504     |         |      |   |       |        
|Dividends paid                                                   |                                                                                   |      | (1,835  | )       |      |   |       |        
|Share capital  issued for cash, net of issue costs              |                                                                                   |      |        |         |      |   | 40     |        
|                                                                 |                                                                                   |      |         |         |      |  
|Net cash flows used for financing activities                     |                                                                                   |      | (5,594  | )       |      |   | (975   | )      
|                                                                 |                                                                                   |      |         |         |      |  
|Effect of exchange rate changes on cash and cash
    equivalents |                                                                                   |      | (232    | )       |      |   | (753   | )      
|                                                                 |                                                                                   |      |         |         |      |  
|Change in cash and cash equivalents                              |                                                                                   |      | 14,688  |         |      |   | 5,252  |        
|Cash and cash equivalents  Beginning of period                  |                                                                                   |      | 98,204  |         |      |   | 82,052 |        
|                                                                 |                                                                                   |      |         |         |      |  
|Cash and cash equivalents  End of period                        |                                                                                   | $    | 112,892 |         |      | $ | 87,304 |        
|                                                                 |                                                                                   |      |         |         |      |  

(the accompanying notes form an integral part of the interim
financial statements)






|                           |                                
|-------------------------- | -------------------------------
|6HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents



Hub International Limited





Notes to Interim Consolidated Financial Statements


For the three months ended March 31, 2005 and 2004
(unaudited) 
 (in thousands of U.S. dollars, except per share amounts or as
otherwise indicated)


1.  Nature of Operations




2.  Summary of Significant Accounting Policies




3.  Commitments and contingencies


|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | On July 1, 2004, the Company purchased all of the common
    shares of Satellite Acquisition Corporation
    (Satellite) a corporation formed by senior
    management at Talbot Financial Corporation (Talbot).
    In turn, Satellite purchased 100% of Talbot from
    Safeco Corporation. The Company will purchase special shares of
    Satellite owned by the management of Talbot using a combination
    of both restricted and unrestricted common shares of the
    Company. Payments will be made on September 1, 2005, March
    31, 2006 and March 31, 2007 based upon Talbots
    earnings for the 12 month periods ending December 31,
    2004, 2005 and 2006, respectively. The contingent payment
    to Talbot management is recorded by the Company as a charge
    to earnings in the form of non-cash stock based compensation
    expense over the period in which the payments are earned. The
    Company estimates that the aggregate value of compensation which
    will be recognized under this arrangement will be $45 -
    $50 million, of which $7.2 million was recognized in
    the first quarter 2005 and $21.6 million has been
    recognized in total from the date of acquisition through
    March 31, 2005 as an expense with an offsetting credit to
    accounts payable and accrued liabilities. A payment in common
    shares of the Company of $14.4 million will be paid to
    Talbot management on September 1, 2005.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In connection with other various acquisitions completed through
    March 31, 2005, the Company may be obligated to pay
    contingent consideration up to a maximum sum of approximately
    $11.2 million in cash and $4.4 million in common
    shares of the Company based upon managements best estimate
    of acquired brokerages achieving certain targets. The contingent
    payments are payable on various dates through November 2008
    according to the terms and conditions of each purchase
    agreement. Any additional consideration will be recorded as an
    adjustment to goodwill once the contingency is resolved. In
    connection with contingent consideration earned as at
    March 31, 2005, the financial statements reflect a
    liability to pay cash of $0.7 million.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(b) | In connection with the Companys executive share purchase
    plan, under certain circumstances, the Company may be obligated
    to purchase loans for certain employees from a Canadian
    chartered bank totaling $4,062 and $4,287 as of
    March 31, 2005 and December 31, 2004 respectively, to
    assist in purchasing common shares of the Company. As
    collateral, the employees have pledged 414,000 and 431,000
    of the Companys common shares as of March 31, 2005
    and December 31, 2004, respectively, which have a market
    value of $8,002 and





|                                |                            
|------------------------------- | ---------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 7



---



##### Table of Contents



| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | $7,885 as of March 31, 2005
    and December 31, 2004, respectively. Interest on the loans
    in the amount of $49 and $51 for the three months
    ended March 31, 2005 and 2004, respectively, was paid
    by the Company and is included in cash compensation expense.

4.  Dispositions




5.  Intangible Assets




|                                   |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |   |        |        |  |   |        |        | 
|---------------------------------- | ------------------------- | -------------------- | ------- | ------ | ----------------------- | - | ------ | ------ |  | -------- | ------ | ------ | ----------- | ------------ | ------- | ------ | ----- | - | ------ | ------ |  | - | ------ | ------ | 
|                                   |                           | As of March 31, 2005 |         |        | As of December 31, 2004 |  
|                                   |                           |                      |         |        |                         |  
|                                   |                           | Gross                |         |        |                         |   | Gross  |        |  |         
|                                   |                           | Carrying             |         |        | Accumulated             |   |        |        |  | Carrying |        |        | Accumulated |              |         |       
|                                   |                           | Amount               |         |        | Amortization            |   |        | Total  |  |          | Amount |        |             | Amortization |         |        | Total |  
|                                   |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  
|Definite life intangible assets:   |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |   |        |        |  |   |        |       
|                                   | Customer relationships    |                      | $       | 95,973 |                         |   | $      | 12,605 |  |          | $      | 83,368 |             |              | $       | 95,982 |       |   | $      | 10,802 |  |   | $      | 85,180 | 
|                                   | Non-competition covenants |                      |         | 809    |                         |   |        | 504    |  |          |        | 305    |             |              |         | 791    |       |   |        | 448    |  |   |        | 343    | 
|                                   |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  
|                                   |                           |                      | 96,782  |        |                         |   | 13,109 |        |  |          | 83,673 |        |             |              | 96,773  |        |       |   | 11,250 |        |  |   | 85,523 |       
|Indefinite life intangible assets: |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |   |        |        |  |   |        |       
|                                   | Non-competition covenants |                      |         | 3,300  |                         |   |        |       |  |          |        | 3,300  |             |              |         | 3,319  |       |   |        |       |  |   |        | 3,319  | 
|                                   |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  
|Total                              |                           | $                    | 100,082 |        |                         | $ | 13,109 |        |  | $        | 86,973 |        |             | $            | 100,092 |        |       | $ | 11,250 |        |  | $ | 88,842 |       
|                                   |                           |                      |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  





|                                  |  |            |        |   |            |   |         |       |  |   |         |  
|--------------------------------- |  | ---------- | ------ | - | ---------- | - | ------- | ----- |  | - | ------- | -
|                                  |  | Operations |        |   | Operations |   |         |      
|                                  |  | in Canada  |        |   | in U.S.    |   |         | Total | 
|                                  |  |            |        |   |            |   |         |       | 
|Balance as of December 31, 2003.  |  | $          | 92,079 |   |            | $ | 213,783 |       |  | $ | 305,862 |  
|Goodwill acquired during 2004.    |  |            | 1,005  |   |            |   | 68,298  |       |  |   | 69,303  |  
|Goodwill disposed during 2004.    |  |            | (4,604 | ) |            |   | (727    | )     |  |   | (5,331  | )
|Cumulative translation adjustment |  |            | 6,842  |   |            |   |        |       |  |   | 6,842   |  
|                                  |  |            |        |   |            |   |         |       | 
|Balance as of December 31, 2004.  |  |            | 95,322 |   |            |   | 281,354 |       |  |   | 376,676 |  
|Goodwill acquired during 2005.    |  |            |       |   |            |   | 779     |       |  |   | 779     |  
|Goodwill disposed during 2005.    |  |            | (1,968 | ) |            |   |        |       |  |   | (1,968  | )
|Cumulative translation adjustment |  |            | (474   | ) |            |   |        |       |  |   | (474    | )
|                                  |  |            |        |   |            |   |         |       | 
|Balance as of March 31, 2005.     |  | $          | 92,880 |   |            | $ | 282,133 |       |  | $ | 375,013 |  
|                                  |  |            |        |   |            |   |         |       | 





|                           |                                
|-------------------------- | -------------------------------
|8HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents







|                          |  |      |       |  |      |   |     | 
|------------------------- |  | ---- | ----- |  | ---- | - | --- | 
|                          |  | 2005 |       |  | 2004 |  
|                          |  |      |       |  |      |  
|Customer relationships    |  | $    | 1,803 |  |      | $ | 764 | 
|Non-competition covenants |  |      | 56    |  |      |   | 17  | 
|                          |  |      |       |  |      |  
|Total                     |  | $    | 1,859 |  |      | $ | 781 | 
|                          |  |      |       |  |      |  



|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |       |  |  |   |       | 
|------------------------- |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ----- |  |  | ---- | ----- |  |  | - | ----- | 
|                          |  | 2005 |       |  | 2006 |   |       | 2007 |  |   | 2008  |  |  | 2009 |      
|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |      
|Year ended December 31,   |  |      |       |  |      |   |       |      |  |   |       |  |  |      |       |  |  |   |       | 
|Customer relationships    |  | $    | 7,381 |  |      | $ | 7,401 |      |  | $ | 7,401 |  |  | $    | 7,401 |  |  | $ | 7,401 | 
|Non-competition covenants |  |      | 173   |  |      |   | 104   |      |  |   | 94    |  |  |      | 13    |  |  |   | 2     | 
|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |      
|Total                     |  | $    | 7,554 |  |      | $ | 7,505 |      |  | $ | 7,495 |  |  | $    | 7,414 |  |  | $ | 7,403 | 
|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |      

6.  Debt


Long-term debt and capital leases




|                                                       |  |           |         |   |              |   |         |  
|------------------------------------------------------ |  | --------- | ------- | - | ------------ | - | ------- | -
|                                                       |  | March 31, |         |   | December 31, |  
|                                                       |  | 2005      |         |   | 2004         |  
|                                                       |  |           |         |   |              |  
|Series A Senior Notes, with interest at 5.71% (1)      |  | $         | 10,000  |   |              | $ | 10,000  |  
|Series B Senior Notes, with interest at 6.16% (1)      |  |           | 55,000  |   |              |   | 55,000  |  
|Revolving U.S. Dollar LIBOR Loan (2)                   |  |           | 65,000  |   |              |   | 65,000  |  
|Term loan, interest only at 10%, due February 2007 (3) |  |           |        |   |              |   | 7,500   |  
|Term loan, variable interest, due December 2007.       |  |           | 3,200   |   |              |   | 3,500   |  
|Various other unsecured notes payable and debt (4)     |  |           | 9,455   |   |              |   | 10,329  |  
|Capital leases (4)                                     |  |           | 391     |   |              |   | 468     |  
|                                                       |  |           |         |   |              |  
|Long-term debt and capital leases                      |  |           | 143,046 |   |              |   | 151,797 |  
|Less current portion                                   |  |           | (5,161  | ) |              |   | (5,195  | )
|                                                       |  |           |         |   |              |  
|                                                       |  | $         | 137,885 |   |              | $ | 146,602 |  
|                                                       |  |           |         |   |              |  



|                                      |  |   |         | 
|------------------------------------- |  | - | ------- | 
|For the twelve months ended March 31, |  |   |         | 
|2006                                  |  | $ | 5,161   | 
|2007                                  |  |   | 4,128   | 
|2008                                  |  |   | 2,583   | 
|2009                                  |  |   | 69,412  | 
|2010                                  |  |   | 14,429  | 
|2011 and thereafter                   |  |   | 47,333  | 
|                                      |  |   |        
|                                      |  | $ | 143,046 | 
|                                      |  |   |        








|    |                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Senior Notes  As at March 31, 2005 the Company
    has outstanding $65 million aggregate principal amount of
    unsecured senior notes issued June 10, 2002. The senior
    notes were issued in two series. Series A represents





|                                |                            
|------------------------------- | ---------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 9



---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | $10 million aggregate
    principal amount of 5.71% senior notes with interest due
    semi-annually, and principal of $3,333 due annually,
    June 15, 2008 through June 15, 2010. Series B
    represents $55 million aggregate principal amount of 6.16%
    senior notes with interest due semi-annually, and principal of
    $11,000 due annually, June 15, 2009 through June 15,
    2013. The senior notes were sold on a private basis in the
    United States to institutional accredited investors. Net
    proceeds of the sale of the senior notes were used to pay down
    $50 million of the Companys revolving
    U.S. Dollar LIBOR loan with the balance used for general
    corporate purposes and acquisitions. The Company incurred
    approximately $0.7 million in fees and expenses related to
    the offering of these notes, which were capitalized and are
    being amortized to expense over the term of the notes. At
    March 31, 2005 the Company was in compliance with all
    financial covenants governing the senior notes.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | On July 15, 2003, the Company entered into an interest rate
    swap agreement. The effect of the swap is to convert the fixed
    rate interest payments on the 5.71% senior notes and 6.16%
    senior notes in amounts of $10 million and
    $55 million, respectively, to a floating rate, resulting in
    a savings of approximately 0.99% and 2.44% for the three months
    ended March 31, 2005 and 2004, respectively. The Company
    accounts for the swap transaction using the synthetic
    instruments method under which the net interest expense on the
    swap and associated debt is reported in earnings as if it were a
    single, synthetic, financial instrument. As at March 31,
    2005, the Company estimated the fair value of the swap to be
    $3.8 million, which is not recognized in these financial
    statements. Accordingly, $3.8 million is the estimated
    amount that the Company would need to pay to terminate the swap
    as of March 31, 2005.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Revolving U.S. dollar LIBOR loan  This unsecured
    facility totals $75 million, bears interest at a floating
    rate of prime plus 1% or 112.5 basis points above LIBOR. LIBOR
    was 2.86% and 2.40% at March 31, 2005 and December 31,
    2004, respectively. The facility is available on a revolving
    basis for one year. Subsequent to March 31, 2005, the
    Company successfully renewed this loan with terms identical to
    the existing loan. The new loan expires on April 19, 2006.
    However, if the revolving period is not extended, the Company
    may convert the outstanding balance under the facility to a
    three year non-revolving term loan repayable at the end of three
    years with an interest rate of 137.5 basis points above the
    Canadian dollar interest swap rate. An annual commitment fee of
    20 basis points is assessed on the unused balance.
    Borrowings under this facility totaled $65 million at
    March 31, 2005 and December 31, 2004. As of
    March 31, 2005, the Company was in compliance with all
    financial covenants governing this facility.
|   
|(3) | During the quarter ended March 31, 2005 an early payment
    settlement was negotiated in respect of the Companys
    $7.5 million loan from an insurance carrier. The loan
    agreement provided for an incentive agreement whereby a credit
    could be earned to reduce interest payments (based on target
    premiums placed with the carrier) and principal amounts (based
    on target premiums placed with the carrier as well as loss
    ratios on those premiums). The early settlement negotiations
    resulted in the $7.5 million principal amount of the term
    loan being reduced to $3.0 million and interest payments
    for the first quarter 2005 being reduced to zero. The Company
    paid $3.0 million in March 2005 and recorded a gain on
    forgiveness of debt of $4.5 million for the quarter ended
    March 31, 2005. Interest expense on this loan totaled NIL
    and $0.2 million (which was subsequently reduced to zero in
    the fourth quarter 2004) for the three months ended
    March 31, 2005 and 2004, respectively.                                                        
|   
|(4) | Certain property and equipment have been pledged as collateral
    in amounts not less than the outstanding balance of the loan at
    March 31, 2005 and December 31, 2004, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        




Demand U.S. dollar base rate loan




Subordinated convertible debentures








|                            |                                
|--------------------------- | -------------------------------
|10HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents





7.  Shareholders Equity


Share capital




|                                                          |  |               |        |  |        |   |         | 
|--------------------------------------------------------- |  | ------------- | ------ |  | ------ | - | ------- | 
|                                                          |  | Common shares |       
|                                                          |  | outstanding   |       
|                                                          |  |               |       
|                                                          |  | (000s)       |        |  | Amount |  
|                                                          |  |               |        |  |        |  
|Balance, December 31, 2004                                |  |               | 30,411 |  |        | $ | 259,617 | 
|Stock options exercised                                   |  |               | 33     |  |        |   | 504     | 
|Restricted share units released                           |  |               | 12     |  |        |   | 198     | 
|Executive share purchase plan shares, net of cancellation |  |               | 7      |  |        |   | 99      | 
|                                                          |  |               |        |  |        |  
|Balance, March 31, 2005                                   |  |               | 30,463 |  |        | $ | 260,418 | 
|                                                          |  |               |        |  |        |  

Contributed surplus


|                                  |  |        |        |  
|--------------------------------- |  | ------ | ------ | -
|                                  |  | Amount |       
|                                  |  |        |       
|Balance, December 31, 2004        |  | $      | 12,681 |  
|Non-cash stock based compensation |  |        | 1,711  |  
|Other                             |  |        | (178   | )
|                                  |  |        |       
|Balance, March 31, 2005           |  | $      | 14,214 |  
|                                  |  |        |       

Cumulative translation account


|                                                                        |  |        |        |  
|----------------------------------------------------------------------- |  | ------ | ------ | -
|                                                                        |  | Amount |       
|                                                                        |  |        |       
|Balance December 31, 2004                                               |  | $      | 26,983 |  
|Translation of self-sustaining foreign operations                       |  |        | (474   | )
|Translation of debt financing of self-sustaining foreign
    operations |  |        | 2      |  
|                                                                        |  |        |       
|Balance, March 31, 2005                                                 |  | $      | 26,511 |  
|                                                                        |  |        |       

8.  Equity Incentive Plan








|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 11



---



##### Table of Contents





|                           |  |         |       |   |                  |   |       | 
|-------------------------- |  | ------- | ----- | - | ---------------- | - | ----- | 
|                           |  | Number  |       |   | Weighted-Average |  
|                           |  | (000s) |       |   | Exercise Price   |  
|                           |  |         |       |   |                  |  
|Balance, December 31, 2004 |  |         | 1,456 |   |                  | $ | 15.34 | 
|Granted                    |  |         |      |   |                  | $ |      | 
|Exercised                  |  |         | (33   | ) |                  | $ | 15.12 | 
|Forfeited                  |  |         |      |   |                  | $ |      | 
|                           |  |         |       |   |                  |  
|Balance, March 31, 2005.   |  |         | 1,423 |   |                  | $ | 15.35 | 
|                           |  |         |       |   |                  |  



|               |  |                |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             |  |            |  |  |  |     | 
|-------------- |  | -------------- | ----- |  | ----------------- |  | ---------- | ----------- |  |  | ----------- |  |  | ---------------- | ----- |  | ----------- |  | ---------- |  |  |  | --- | 
|               |  | March 31, 2005 |       |  | December 31, 2004 | 
|               |  |                |       |  |                   | 
|               |  | Number         |       |  | Weighted-Average  |  |            | Number      |  |  | Number      |  |  | Weighted-Average |       |  | Number      | 
|               |  | Outstanding    |       |  | Remaining         |  |            | Exercisable |  |  | Outstanding |  |  | Remaining        |       |  | Exercisable | 
|               |  | (000s)        |       |  | Contractual Life  |  |            | (000s)     |  |  | (000s)     |  |  | Contractual Life |       |  | (000s)     | 
|Exercise price |  |                |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             | 
|$15.67         |  |                | 1,178 |  |                   |  | 4.20 years |             |  |  | 796         |  |  |                  | 1,201 |  |             |  | 4.42 years |  |  |  | 812 | 
|$13.79         |  |                | 245   |  |                   |  | 4.92 years |             |  |  | 169         |  |  |                  | 255   |  |             |  | 5.16 years |  |  |  | 96  | 
|               |  |                |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             | 
|               |  |                | 1,423 |  |                   |  | 4.33 years |             |  |  | 965         |  |  |                  | 1,456 |  |             |  | 4.55 years |  |  |  | 908 | 
|               |  |                |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             | 









|                                   |                                                                 |      |       |       |      |   |       |     | 
|---------------------------------- | --------------------------------------------------------------- | ---- | ----- | ----- | ---- | - | ----- | --- | 
|                                   |                                                                 | 2005 |       |       | 2004 |  
|                                   |                                                                 |      |       |       |      |  
|Non-cash stock based compensation: |                                                                 |      |       |       |      |   |       |    
|                                   | Stock options granted June 2002                                 |      | $     | 462   |      |   | $     | 491 | 
|                                   | Stock options granted February 2003                             |      |       | 100   |      |   |       | 102 | 
|                                   | Stock based compensation granted for 2003 bonuses               |      |       | 734   |      |   |       | 633 | 
|                                   | Restricted share units                                          |      |       | 415   |      |   |       | 388 | 
|                                   | Restricted share units  EMT                                    |      |       | 86    |      |   |       |    | 
|                                   | Other                                                           |      |       | 7     |      |   |       |    | 
|                                   |                                                                 |      |       |       |      |  
|                                   |                                                                 |      | 1,804 |       |      |   | 1,614 |    
|                                   | Non-cash stock based compensation related to Talbot acquisition |      |       | 7,194 |      |   |       |    | 
|                                   |                                                                 |      |       |       |      |  
|                                   |                                                                 | $    | 8,998 |       |      | $ | 1,614 |    
|                                   |                                                                 |      |       |       |      |  





|                            |                                
|--------------------------- | -------------------------------
|12HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents





|                                                      |  |      |        |  |      |   |        |      |  |   |       |  |  |      |       |  |      |   |       |  |  |   |       | 
|----------------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ----- |  |  | ---- | ----- |  | ---- | - | ----- |  |  | - | ----- | 
|                                                      |  | 2005 |        |  | 2006 |   |        | 2007 |  |   | 2008  |  |  | 2009 |       |  | 2010 |  
|Year ended December 31,                               |  |      |        |  |      |   |        |      |  |   |       |  |  |      |       |  |      |  
|Stock options granted June 2002                       |  | $    | 851    |  |      | $ |       |      |  | $ |      |  |  | $    |      |  |      | $ |      |  |  | $ |      | 
|Stock options granted February 2003                   |  |      | 366    |  |      |   |       |      |  |   |      |  |  |      |      |  |      |   |      |  |  |   |      | 
|Stock based compensation granted for 2003 bonuses     |  |      | 2,482  |  |      |   | 2,245  |      |  |   | 2,154 |  |  |      | 2,154 |  |      |   | 2,154 |  |  |   | 2,095 | 
|Stock based compensation regarding Talbot acquisition |  |      | 25,459 |  |      |   | 8,400  |      |  |   | 1,508 |  |  |      |      |  |      |   |      |  |  |   |      | 
|Restricted Share Units                                |  |      | 1,661  |  |      |   | 1,654  |      |  |   | 1,618 |  |  |      | 1,618 |  |      |   | 347   |  |  |   | 130   | 
|Restricted Share Units  EMT                          |  |      | 861    |  |      |   | 1,033  |      |  |   | 1,033 |  |  |      | 1,033 |  |      |   | 404   |  |  |   |      | 
|Other                                                 |  |      | 111    |  |      |   | 19     |      |  |   | 5     |  |  |      |      |  |      |   |      |  |  |   |      | 
|                                                      |  |      |        |  |      |   |        |      |  |   |       |  |  |      |       |  |      |  
|                                                      |  | $    | 31,791 |  |      | $ | 13,351 |      |  | $ | 6,318 |  |  | $    | 4,805 |  |      | $ | 2,905 |  |  | $ | 2,225 | 
|                                                      |  |      |        |  |      |   |        |      |  |   |       |  |  |      |       |  |      |  

9.  Earnings Per Share




|                                                                               |                                                                              |      |        |       |      |   |        |       | 
|------------------------------------------------------------------------------ | ---------------------------------------------------------------------------- | ---- | ------ | ----- | ---- | - | ------ | ----- | 
|                                                                               |                                                                              | 2005 |        |       | 2004 |  
|                                                                               |                                                                              |      |        |       |      |  
|Net earnings (numerator)                                                       |                                                                              | $    | 16,480 |       |      | $ | 9,623  |      
|Effect of dilutive securities:                                                 |                                                                              |      |        |       |      |   |        |      
|                                                                               | Interest on 8.5% subordinated convertible debentures (net of
    income tax) |      |        | 475   |      |   |        | 475   | 
|Payment in lieu of dividends on restricted share units (net of
    income tax) |                                                                              |      | 28     |       |      |   |       |      
|                                                                               |                                                                              |      |        |       |      |  
|Net earnings plus assumed conversions (numerator)                              |                                                                              | $    | 16,983 |       |      | $ | 10,098 |      
|                                                                               |                                                                              |      |        |       |      |  
|Weighted average shares outstanding  Basic
    (denominator)                  |                                                                              |      | 30,368 |       |      |   | 30,015 |      
|Effect of dilutive securities:                                                 |                                                                              |      |        |       |      |   |        |      
|                                                                               | 8.5% subordinated convertible debentures                                     |      |        | 2,518 |      |   |        | 2,705 | 
|                                                                               | Stock options                                                                |      |        | 1,340 |      |   |        | 1.077 | 
|                                                                               | Restricted share units                                                       |      |        | 889   |      |   |        | 326   | 
|                                                                               | Talbot earnout shares                                                        |      |        | 1,213 |      |   |        |      | 
|                                                                               | Retractable shares                                                           |      |        | 69    |      |   |        | 133   | 
|                                                                               | Issuable shares                                                              |      |        |      |      |   |        | 2     | 
|                                                                               |                                                                              |      |        |       |      |  
|Weighted average shares outstanding  Diluted
    (denominator)                |                                                                              |      | 36,397 |       |      |   | 34,258 |      
|                                                                               |                                                                              |      |        |       |      |  
|Earnings per common share:                                                     |                                                                              |      |        |       |      |   |        |      
|                                                                               | Basic                                                                        |      | $      | 0.54  |      |   | $      | 0.32  | 
|                                                                               | Diluted                                                                      |      | $      | 0.47  |      |   | $      | 0.29  | 

10. Income Taxes




11. Interest and Income Taxes Paid




|                  |  |      |       |  |      |   |       | 
|----------------- |  | ---- | ----- |  | ---- | - | ----- | 
|                  |  | 2005 |       |  | 2004 |  
|                  |  |      |       |  |      |  
|Interest paid     |  | $    | 820   |  |      | $ | 161   | 
|Income taxes paid |  | $    | 5,576 |  |      | $ | 5,381 | 





|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 13



---



##### Table of Contents



12. Segmented Information






|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|--------------------------------------- |  | ------------------------------------ | ------ | - | ---- | - | ------ | ------------ |  | - | ------- | - |  | ---- | ------ | - | ------------ | - | ------ | - |  | - | ------ | -
|                                        |  | For the three months ended March 31, |       
|                                        |  |                                      |       
|                                        |  | 2005                                 |        |   | 2004 |  
|                                        |  |                                      |        |   |      |  
|                                        |  | Canada                               |        |   | U.S. |   |        | Consolidated |  |   | Canada  |   |  | U.S. |        |   | Consolidated |  
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Revenue                                 |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                    | 34,505 |   |      | $ | 87,066 |              |  | $ | 121,571 |   |  | $    | 30,469 |   |              | $ | 48,776 |   |  | $ | 79,245 |  
|Corporate                               |  |                                      | 5,917  |   |      |   | 3,303  |              |  |   | 9,220   |   |  |      | 3,425  |   |              |   | 731    |   |  |   | 4,156  |  
|Elimination of intra-segment revenue    |  |                                      | (5,849 | ) |      |   | (3,245 | )            |  |   | (9,094  | ) |  |      | (3,348 | ) |              |   | (704   | ) |  |   | (4,052 | )
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                    | 34,573 |   |      | $ | 87,124 |              |  | $ | 121,697 |   |  | $    | 30,546 |   |              | $ | 48,803 |   |  | $ | 79,349 |  
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Net earnings (loss) before income taxes |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                    | 8,424  |   |      | $ | 23,990 |              |  | $ | 32,414  |   |  | $    | 6,377  |   |              | $ | 10,993 |   |  | $ | 17,370 |  
|Corporate                               |  |                                      | (5,638 | ) |      |   | 2,586  |              |  |   | (3,052  | ) |  |      | (744   | ) |              |   | (1,734 | ) |  |   | (2,478 | )
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                    | 2,786  |   |      | $ | 26,576 |              |  | $ | 29,362  |   |  | $    | 5,633  |   |              | $ | 9,259  |   |  | $ | 14,892 |  
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Income tax expense (benefit)  current  |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                    | 2,654  |   |      | $ | 10,369 |              |  | $ | 13,023  |   |  | $    | 2,277  |   |              | $ | 5,825  |   |  | $ | 8,102  |  
|Corporate                               |  |                                      | 1,002  |   |      |   | (171   | )            |  |   | 831     |   |  |      | 73     |   |              |   | (1,437 | ) |  |   | (1,364 | )
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                    | 3,656  |   |      | $ | 10,198 |              |  | $ | 13,854  |   |  | $    | 2,350  |   |              | $ | 4,388  |   |  | $ | 6,738  |  
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Income tax expense (benefit)  future   |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                    | (113   | ) |      | $ | (959   | )            |  | $ | (1,072  | ) |  | $    | (47    | ) |              | $ | (1,362 | ) |  | $ | (1,409 | )
|Corporate                               |  |                                      | (183   | ) |      |   | 283    |              |  |   | 100     |   |  |      | (198   | ) |              |   | 138    |   |  |   | (60    | )
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                    | (296   | ) |      | $ | (676   | )            |  | $ | (972    | ) |  | $    | (245   | ) |              | $ | (1,224 | ) |  | $ | (1,469 | )
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Net earnings (loss)                     |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                    | 5,883  |   |      | $ | 14,580 |              |  | $ | 20,463  |   |  | $    | 4,147  |   |              | $ | 6,530  |   |  | $ | 10,677 |  
|Corporate                               |  |                                      | (6,457 | ) |      |   | 2,474  |              |  |   | (3,983  | ) |  |      | (619   | ) |              |   | (435   | ) |  |   | (1,054 | )
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                    | (574   | ) |      | $ | 17,054 |              |  | $ | 16,480  |   |  | $    | 3,528  |   |              | $ | 6,095  |   |  | $ | 9,623  |  
|                                        |  |                                      |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Amortization of intangible assets       |  | $                                    | 32     |   |      | $ | 1,827  |              |  | $ | 1,859   |   |  | $    | 27     |   |              | $ | 754    |   |  | $ | 781    |  
|Additions to property and equipment     |  | $                                    | 490    |   |      | $ | 446    |              |  | $ | 936     |   |  | $    | 513    |   |              | $ | 883    |   |  | $ | 1,396  |  
|Depreciation                            |  | $                                    | 690    |   |      | $ | 1,391  |              |  | $ | 2,081   |   |  | $    | 642    |   |              | $ | 945    |   |  | $ | 1,587  |  
|Interest income                         |  | $                                    | 306    |   |      | $ | 480    |              |  | $ | 786     |   |  | $    | 278    |   |              | $ | 184    |   |  | $ | 462    |  
|Interest expense                        |  | $                                    | 2,182  |   |      | $ | 221    |              |  | $ | 2,403   |   |  | $    | 1,393  |   |              | $ | 267    |   |  | $ | 1,660  |  





|                            |                                
|--------------------------- | -------------------------------
|14HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents



|                    |  |                                            |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |   |         |  |  |   |         | 
|------------------- |  | ------------------------------------------ | ------- |  | ---- | - | ------- | ------------ |  | - | ------- |  |  | ---- | ------- |  | ------------ | - | ------- |  |  | - | ------- | 
|                    |  | As of March 31, 2005 and December 31, 2004 |        
|                    |  |                                            |        
|                    |  | 2005                                       |         |  | 2004 |  
|                    |  |                                            |         |  |      |  
|                    |  | Canada                                     |         |  | U.S. |   |         | Consolidated |  |   | Canada  |  |  | U.S. |         |  | Consolidated |  
|                    |  |                                            |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |  
|Identifiable assets |  |                                            |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |   |         |  |  |   |         | 
|Brokerage           |  | $                                          | 168,034 |  |      | $ | 597,706 |              |  | $ | 765,740 |  |  | $    | 172,445 |  |              | $ | 624,171 |  |  | $ | 796,616 | 
|Corporate           |  |                                            | 43,857  |  |      |   | 7,280   |              |  |   | 51,137  |  |  |      | 43,769  |  |              |   | 17,150  |  |  |   | 60,919  | 
|                    |  |                                            |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |  
|                    |  | $                                          | 211,891 |  |      | $ | 604,986 |              |  | $ | 816,877 |  |  | $    | 216,214 |  |              | $ | 641,321 |  |  | $ | 857,535 | 
|                    |  |                                            |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |  

13. Related Party Transactions




|                                          |  |      |       |   |      |   |       | 
|----------------------------------------- |  | ---- | ----- | - | ---- | - | ----- | 
|                                          |  | 2005 |       |   | 2004 |  
|                                          |  |      |       |   |      |  
|Northbridge Financial Corporation         |  | $    | 4,635 |   |      | $ | 4,458 | 
|Crum & Forster Holdings, Inc.             |  |      | 178   |   |      |   | 183   | 
|Fairfax Inc.                              |  |      | (253  | ) |      |   | 1,432 | 
|                                          |  |      |       |   |      |  
|                                          |  |      | 4,560 |   |      |   | 6,073 | 
|Old Lyme Insurance Company, Ltd. (OLIC) |  |      | 1,490 |   |      |   |      | 
|                                          |  |      |       |   |      |  
|                                          |  | $    | 6,050 |   |      | $ | 6,073 | 
|                                          |  |      |       |   |      |  







14. Reconciliation to U.S. GAAP








|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 15



---



##### Table of Contents



Net earnings and comprehensive income




|                                                                         |                                                                 |      |        |      |      |   |       |        |  
|------------------------------------------------------------------------ | --------------------------------------------------------------- | ---- | ------ | ---- | ---- | - | ----- | ------ | -
|                                                                         |                                                                 | 2005 |        |      | 2004 |  
|                                                                         |                                                                 |      |        |      |      |  
|Net earnings for the period based on Canadian GAAP and U.S.
    GAAP (1) |                                                                 | $    | 16,480 |      |      | $ | 9,623 |       
|Other comprehensive income: (2)                                          |                                                                 |      |        |      |      |   |       |       
|                                                                         | Unrealized gain net of tax of $(35)  Q1/05,
    $(23)  Q1/04. |      |        | 53   |      |   |       | 35     |  
|                                                                         | Foreign currency translation adjustment                         |      |        | (472 | )    |   |       | (1,292 | )
|                                                                         |                                                                 |      |        |      |      |  
|Comprehensive income based on U.S. GAAP (2)                              |                                                                 | $    | 16,061 |      |      | $ | 8,366 |       
|                                                                         |                                                                 |      |        |      |      |  

Shareholders equity




|                                            |                                                               |           |         |     |              |   |         |     | 
|------------------------------------------- | ------------------------------------------------------------- | --------- | ------- | --- | ------------ | - | ------- | --- | 
|                                            |                                                               | March 31, |         |     | December 31, |  
|                                            |                                                               | 2005      |         |     | 2004         |  
|                                            |                                                               |           |         |     |              |  
|Shareholders equity based on Canadian GAAP |                                                               | $         | 398,290 |     |              | $ | 381,783 |    
|Adjustment to investment held for sale (3)  |                                                               |           | (1,716  | )   |              |   | (1,716  | )  
|Accumulated other comprehensive income:     |                                                               |           |         |     |              |   |         |    
|                                            | Unrealized gain net of tax of $(136)  2005,
    $(99)  2004 |           |         | 209 |              |   |         | 157 | 
|                                            |                                                               |           |         |     |              |  
|Shareholders equity based on U.S. GAAP (3) |                                                               | $         | 396,783 |     |              | $ | 380,224 |    
|                                            |                                                               |           |         |     |              |  








|    |                                                                                                                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The condensed consolidated statements of earnings and cash flows
    for the three months ended March 31, 2005 and 2004, were
    the same under Canadian and U.S. GAAP. The condensed
    consolidated balance sheets as at March 31, 2005 and
    December 31, 2004 under U.S. GAAP are as follows:

|                                       |  |           |         |  |              |   |         | 
|-------------------------------------- |  | --------- | ------- |  | ------------ | - | ------- | 
|                                       |  | March 31, |         |  | December 31, |  
|                                       |  | 2005      |         |  | 2004         |  
|                                       |  |           |         |  |              |  
|Condensed consolidated balance sheets: |  |           |         |  |              |   |         | 
|Total current assets                   |  | $         | 314,607 |  |              | $ | 348,707 | 
|Total assets (4)                       |  | $         | 811,829 |  |              | $ | 853,753 | 
|Total current liabilities              |  | $         | 230,473 |  |              | $ | 279,345 | 
|Total liabilities (4)                  |  | $         | 415,046 |  |              | $ | 473,529 | 
|Total shareholders equity             |  | $         | 396,783 |  |              | $ | 380,224 | 



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Under U.S. GAAP, comprehensive income is measured in accordance
    with SFAS No. 130, Reporting Comprehensive Income. This
    standard defines comprehensive income as all changes in equity
    other than those resulting from investments by owners and
    distributions to owners and includes the change in unrealized
    gains (losses) on debt and equity securities and foreign
    currency translation adjustments. Under Canadian GAAP unrealized
    gains and losses (arising from a temporary decline in value) on
    equity securities are not recorded and foreign currency
    translation adjustments are presented as movements in the
    cumulative translation account. Certain disclosures required by
    SFAS 115, Accounting for Certain Investments in Debt and
    Equity Securities, have not been included as such disclosures
    related to the Companys investments in debt and equity
    securities are immaterial to the overall financial statement
    presentation.
|   
|(3) | Under Canadian GAAP, Old Lyme Insurance Company of Rhode Island
    and Old Lyme Insurance Company Ltd. (collectively, Old
    Lyme) was recorded as an investment held for sale at its
    cost, which was equivalent to its fair                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            





|                            |                                
|--------------------------- | -------------------------------
|16HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | value, of $40,938 on June 28,
    2001. No further adjustments were made to the carrying value of
    the investment until Old Lyme was sold on May 30, 2002,
    when the Company recorded a gain of $2,613, equal to the
    difference between the sale proceeds (which were agreed to be
    its net asset value under U.S. GAAP as of December 31, 2001
    plus interest at 4% per annum from December 31, 2001 until
    closing) and its carrying value. Interest on debt financing the
    purchase of Old Lyme was charged to income as it accrued.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Under U.S. GAAP, Old Lyme was recorded as an investment held for
    sale at its fair value of $40,938. Between acquisition and
    completion of the sale the carrying value of the investment was
    adjusted for increases in fair value due to changes in its U.S.
    GAAP net asset value and interest accretion. Such adjustments
    were reflected as changes in goodwill arising on the HUB
    Northeast acquisition. Interest on debt financing the purchase
    of Old Lyme was debited to the carrying value of the investment
    and did not impact earnings. The difference between the carrying
    value of the investment as of the date of completion of the sale
    and the sale proceeds was reflected as an adjustment to goodwill
    arising on the HUB Northeast acquisition and accordingly no gain
    or loss was recorded in income.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | Under Canadian GAAP, the Company accounts for the interest rate
    swap transaction which converted fixed rate interest payments of
    5.71% and 6.16% on the Senior Notes of $10 million and
    $55 million, respectively, using the synthetic instruments
    method. Under this method, the Company reports in earnings the
    net interest expense on the swap and associated debt as if it
    were a single, synthetic, financial instrument. The fair value
    of the swap, estimated at $3.8 million, is not recognized
    in the Companys Canadian GAAP financial statements. Under
    U.S. GAAP, the Company has designated the swap transaction of a
    hedge of changes in the fair value of its fixed rate debt caused
    by changes in interest rates. Under SFAS 133, Accounting for
    Derivative Instruments and Hedging Activities, the Company
    records the swap at its fair value. Changes in fair value of the
    swap are reported in earnings. Changes in the fair value of the
    debt being hedged which are attributable to changes in interest
    rates are recognized in earnings by adjustment of the carrying
    amount of the debt.

15. Subsequent Events








|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 17



---



##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 2. | Managements Discussion and Analysis of Financial
    Condition and Results of Operations

The following discussion and analysis should be read in
conjunction with our unaudited consolidated financial statements
and accompanying notes included elsewhere in this report.
Certain information contained in Managements
Discussion and Analysis of Financial Condition and Results of
Operations are forward-looking statements that involve
risks and uncertainties. Our actual results may differ
materially from the results discussed in the forward-looking
statements because of various factors, including those discussed
below and elsewhere in this Form 10-Q. Reference to
Hub, we, us, our
and the registrant refer to Hub International
Limited and its subsidiaries, unless otherwise expressly stated.
Unless otherwise indicated, all dollar amounts are expressed in,
and the term dollars and the symbol $
refer to, U.S. dollars. The term Canadian
dollars and the symbol C$ refer to Canadian
dollars. Our financial statements are prepared in accordance
with Canadian generally accepted accounting principles
(Canadian GAAP). These principles differ in certain
respects from United States generally accepted accounting
principles (U.S. GAAP) and to the extent that
they affect us are described in Note 14 to our unaudited
consolidated financial statements.


Overview








same-store-sales








|                            |                                
|--------------------------- | -------------------------------
|18HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents







Results of Operations


Three months ended March 31, 2005 compared with three
months ended March 31, 2004


Revenue






|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |     | 
|------------------------------ | -------------------------------- | ------- | ------- | --------- | ---- | - | --------- | --------- | ---------- | -------------- | --------- | ------ | ------- | ------------- | ----- | ------- | --------- | - | ------- | --------- | - | - | ----- | ----- |  |  | ---- | --- | 
|                               |                                  | Revenue |         |           |      |   |           |           | Adjustment |                |           |        |         |              
|                               |                                  |         |         |           |      |   |           |           | for        |                |           |        |         |              
|(in thousands of U.S. dollars, |                                  |         |         | Total Net |      |   | Total Net |           |            | (Acquisitions) |           |        | Organic |               |       | Organic |          
|except percentages)            |                                  | 2005    |         |           | 2004 |   |           | Change($) |            |                | Growth(%) |        |         | and Disposals |       |         | Growth($) |   |         | Growth(%) |  
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  
|Total                          |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |    
|Commission Income              |                                  | $       | 88,969  |           |      | $ | 61,585    |           |            | $              | 27,384    |        |         |               | 44%   |         |           | $ | (25,259 | )         |   | $ | 2,125 |       |  |  | 4%   |    
|Contingent                     |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |    
|                               | Commissions and Volume Overrides |         |         | 29,160    |      |   |           | 15,037    |            |                |           | 14,123 |         |               |       | 94%     |           |   |         | (8,708    | ) |   |       | 5,415 |  |  |      | 36% | 
|Other Income                   |                                  |         | 3,568   |           |      |   | 2,727     |           |            |                | 841       |        |         |               | 31%   |         |           |   | (672    | )         |   |   | 169   |       |  |  | 6%   |    
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  
|Total                          |                                  | $       | 121,697 |           |      | $ | 79,349    |           |            | $              | 42,348    |        |         |               | 53%   |         |           | $ | (34,639 | )         |   | $ | 7,709 |       |  |  | 10%  |    
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  
|                              
|U.S.                           |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |    
|Commission Income              |                                  | $       | 63,153  |           |      | $ | 37,048    |           |            | $              | 26,105    |        |         |               | 70%   |         |           | $ | (26,387 | )         |   | $ | (282  | )     |  |  | (1)% |    
|Contingent                     |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |    
|                               | Commissions and Volume Overrides |         |         | 20,957    |      |   |           | 9,643     |            |                |           | 11,314 |         |               |       | 117%    |           |   |         | (8,995    | ) |   |       | 2,319 |  |  |      | 24% | 
|Other Income                   |                                  |         | 3,014   |           |      |   | 2,112     |           |            |                | 902       |        |         |               | 43%   |         |           |   | (709    | )         |   |   | 193   |       |  |  | 9%   |    
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  
|Total                          |                                  | $       | 87,124  |           |      | $ | 48,803    |           |            | $              | 38,321    |        |         |               | 79%   |         |           | $ | (36,091 | )         |   | $ | 2,230 |       |  |  | 5%   |    
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  
|                              
|Canada                         |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |    
|Commission Income              |                                  | $       | 25,816  |           |      | $ | 24,537    |           |            | $              | 1,279     |        |         |               | 5%    |         |           | $ | 1,128   |           |   | $ | 2,407 |       |  |  | 10%  |    
|Contingent                     |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |   |   |       |       |  |  |      |    
|                               | Commissions and Volume Overrides |         |         | 8,203     |      |   |           | 5,394     |            |                |           | 2,809  |         |               |       | 52%     |           |   |         | 287       |   |   |       | 3,096 |  |  |      | 57% | 
|Other Income                   |                                  |         | 554     |           |      |   | 615       |           |            |                | (61       | )      |         |               | (10)% |         |           |   | 37      |           |   |   | (24   | )     |  |  | (4)% |    
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  
|Total                          |                                  | $       | 34,573  |           |      | $ | 30,546    |           |            | $              | 4,027     |        |         |               | 13%   |         |           | $ | 1,452   |           |   | $ | 5,479 |       |  |  | 18%  |    
|                               |                                  |         |         |           |      |   |           |           |            |                |           |        |         |               |       |         |           |   |         |           |  





|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 19



---



##### Table of Contents









| |   |                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Volume overrides  additional compensation paid by
    insurance companies to brokerages on the basis of the overall
    volume of business a brokerage places with the insurance company.                                         
|
| |  | Contingent commissions  additional compensation based
    on the profit an insurance company makes on the book of business
    a brokerage places with the insurance company.                                                     
|
| |  | Other income  comprised primarily of premium finance
    fees, fees charged to clients in lieu of commissions and
    interest income, including income earned while we hold client
    premiums on behalf of insurance companies.



|                                                                     |                                                                   |              |        |        |             |   |      |              |   |   |             |       |   |   |      |       |  
|-------------------------------------------------------------------- | ----------------------------------------------------------------- | ------------ | ------ | ------ | ----------- | - | ---- | ------------ | - | - | ----------- | ----- | - | - | ---- | ----- | -
|                                                                     |                                                                   | 2005         |        |        | 2004        |  
|(in thousands of U.S. dollars,                                       |                                                                   |              |        |        |             |  
|except per share amounts)                                            |                                                                   | Net Earnings |        |        | Diluted EPS |   |      | Net Earnings |   |   | Diluted EPS |      
|                                                                     |                                                                   |              |        |        |             |   |      |              |   |   |             |      
|Reported net earnings (GAAP) for the three months ended
    March 31 |                                                                   | $            | 16,480 |        |             | $ | 0.47 |              |   | $ | 9,623       |       |   | $ | 0.29 |      
|                                                                     | Impact of foreign exchange                                        |              | $      | (668   | )           |   | $    | (0.02        | ) |   | $           | (865  | ) |   | $    | (0.02 | )
|                                                                     | Impact of non-cash stock based
    compensation  Talbot          |              | $      | 7,194  |             |   | $    | 0.20         |   |   | $           |      |   |   | $    |      |  
|                                                                     | Impact of gain on forgiveness of debt                             |              | $      | (2,925 | )           |   | $    | (0.08        | ) |   | $           |      |   |   | $    |      |  
|                                                                     | Impact of gain on disposition of assets of
    certain brokerages |              | $      | (1,913 | )           |   | $    | (0.05        | ) |   | $           |      |   |   | $    |      |  
|                                                                     | Impact of loss on write-off of trademarks                         |              | $      |       |             |   | $    |             |   |   | $           | 1,656 |   |   | $    | 0.05  |  









|                            |                                
|--------------------------- | -------------------------------
|20HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents





U.S.
Results




Canadian
Results




Compensation Expense




Compensation Comparison


For the three months ended March 31, 2005 and 2004


(in thousands of U.S. dollars, except percentages)


|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |     |  |  |  |     | 
|--------------------------------- |  | ---- | ------ |  | ---- | - | ------ | -------- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                  |  |      |        |  |      |   |        | % of     | 
|                                  |  |      |        |  |      |   |        | Revenue  | 
|                                  |  |      |        |  |      |   |        |          | 
|                                  |  | 2005 |        |  | 2004 |   |        | % Change |  |  | 2005 |  |  | 2004 |    
|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |    
|Cash compensation                 |  | $    | 63,853 |  |      | $ | 40,637 |          |  |  | 57%  |  |  |      | 52% |  |  |  | 51% | 
|Non-cash stock based compensation |  |      | 8,998  |  |      |   | 1,614  |          |  |  | 457% |  |  |      | 7%  |  |  |  | 2%  | 
|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |    
|Total                             |  | $    | 72,851 |  |      | $ | 42,251 |          |  |  | 72%  |  |  |      | 59% |  |  |  | 53% | 
|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |    







|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 21



---



##### Table of Contents







|                                   |                                                                 |      |       |       |      |   |       |     | 
|---------------------------------- | --------------------------------------------------------------- | ---- | ----- | ----- | ---- | - | ----- | --- | 
|(in thousands of U.S. dollars)     |                                                                 | 2005 |       |       | 2004 |  
|                                   |                                                                 |      |       |       |      |  
|Non-cash stock based compensation: |                                                                 |      |       |       |      |   |       |    
|                                   | Stock options granted June 2002                                 |      | $     | 462   |      |   | $     | 491 | 
|                                   | Stock options granted February 2003                             |      |       | 100   |      |   |       | 102 | 
|                                   | Stock based compensation granted for 2003 bonuses               |      |       | 734   |      |   |       | 633 | 
|                                   | Restricted share units                                          |      |       | 415   |      |   |       | 388 | 
|                                   | Restricted share units  EMT                                    |      |       | 86    |      |   |       |    | 
|                                   | Other                                                           |      |       | 7     |      |   |       |    | 
|                                   |                                                                 |      |       |       |      |  
|                                   |                                                                 |      | 1,804 |       |      |   | 1,614 |    
|                                   | Non-cash stock based compensation related to Talbot acquisition |      |       | 7,194 |      |   |       |    | 
|                                   |                                                                 |      |       |       |      |  
|                                   |                                                                 | $    | 8,998 |       |      | $ | 1,614 |    
|                                   |                                                                 |      |       |       |      |  

Selling, Occupancy and Administration Expense




Depreciation




Interest Expense




Intangible Asset Amortization




Gain on Forgiveness of Debt




(Gain)/ Loss on Disposal of Subsidiaries, Property, Equipment
and Other Assets








|                            |                                
|--------------------------- | -------------------------------
|22HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents



Provision for Income Tax Expense




Net Earnings and Earnings Per Share






Cash Flow, Liquidity and Capital Resources










|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Revolving U.S. dollar LIBOR loan  This unsecured
    facility totals $75 million and bears interest at a
    floating rate of prime plus 1% or 112.5 basis points above
    LIBOR. LIBOR was 2.86% and 2.40% at March 31, 2005 and
    December 31, 2004, respectively. The facility is available
    on a revolving basis for one year. Subsequent to March 31,
    2005, we successfully renewed this loan with terms identical to
    the existing loan. The new loan expires on April 19, 2006.
    However, if the revolving period is not extended, we may convert
    the outstanding balance under the facility to a three year
    non-revolving term loan repayable at the end of three years with
    an interest rate of 137.5 basis points above the Canadian dollar
    interest swap rate. An annual commitment fee of 20 basis points
    is assessed on the unused balance. Borrowings under this
    facility totaled $65 million at March 31, 2005 and
    December 31, 2004. As of March 31, 2005, we were in
    compliance with all financial covenants governing this facility.





|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 23



---



##### Table of Contents





|    |                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Demand U.S. dollar base rate loan  We have an undrawn
    $9.9 million facility which bears interest at the
    banks U.S. base rate, which was 6.25% and 5.75% at
    March 31, 2005 and December 31, 2004, respectively,
    plus 50 basis points. Borrowings under this facility are
    repayable on demand.

















|                            |                                
|--------------------------- | -------------------------------
|24HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents









Contractual obligations




|                                    |  |          |  |           |         |  |     |       |        |     |       |   |         |         |  |  |         | 
|----------------------------------- |  | -------- |  | --------- | ------- |  | --- | ----- | ------ | --- | ----- | - | ------- | ------- |  |  | ------- | 
|Payments due by period              |  |          |  | Less than |         |  | 1-3 |       |        | 4-5 |       |   | After   |        
|(in thousands of U.S. dollars)      |  | Total    |  |           | 1 Year  |  |     | Years |        |     | Years |   |         | 5 Years | 
|                                    |  |          |  |           |         |  |     |       |        |     |       |   |         |        
|Contractual Obligations             |  |          |  |           |         |  |     |       |        |     |       |   |         |         |  |  |         | 
|Long-term debt                      |  | $142,655 |  |           | $ 4,895 |  |     | $     | 6,586  |     |       | $ | 83,841  |         |  |  | $47,333 | 
|Capital lease obligations           |  | 391      |  |           | 266     |  |     |       | 125    |     |       |   |        |         |  |  |        | 
|Operating lease obligations         |  | 74,349   |  |           | 15,766  |  |     |       | 25,755 |     |       |   | 19,362  |         |  |  | 13,466  | 
|Executive share purchase plan loans |  | 523      |  |           |        |  |     |       | 523    |     |       |   |        |         |  |  |        | 
|                                    |  |          |  |           |         |  |     |       |        |     |       |   |         |        
|Total                               |  | $217,918 |  |           | $20,927 |  |     | $     | 32,989 |     |       | $ | 103,203 |         |  |  | $60,799 | 
|                                    |  |          |  |           |         |  |     |       |        |     |       |   |         |        

Acquisitions










|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 25



---



##### Table of Contents



Other






Shareholders equity


Restricted share units.


Share repurchases.


Shares reserved for issuance.




Market Risk


Interest rate risk




Exchange rate sensitivity










|                            |                                
|--------------------------- | -------------------------------
|26HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents





|                               |  |       |     |  |      |       |     | 
|------------------------------ |  | ----- | --- |  | ---- | ----- | --- | 
|(in millions of U.S. dollars)  |  | 2005  |     |  | 2004 |      
|                               |  |       |     |  |      |      
|Revenue                        |  | +/- $ | 0.4 |  |      | +/- $ | 0.4 | 
|Net earnings                   |  | +/- $ | 0.1 |  |      | +/- $ | 0.1 | 
|Cumulative translation account |  | +/- $ | 1.7 |  |      | +/- $ | 1.7 | 



Goodwill and Other Intangible Assets




|                               |       |           |         |         |              |   |         |         | 
|------------------------------ | ----- | --------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                               |       | March 31, |         |         | December 31, |  
|(in thousands of U.S. dollars) |       | 2005      |         |         | 2004         |  
|                               |       |           |         |         |              |  
|Customer relationships         |       | $         | 95,973  |         |              | $ | 95,982  |        
|Non-competition covenants      |       |           | 4,109   |         |              |   | 4,110   |        
|Goodwill                       |       |           | 392,269 |         |              |   | 394,063 |        
|Accumulated amortization       |       |           | (30,365 | )       |              |   | (28,637 | )      
|                               |       |           |         |         |              |  
|                               | Total |           | $       | 461,986 |              |   | $       | 465,518 | 
|                               |       |           |         |         |              |  







|                               |       |      |       |       |      |   |     |     | 
|------------------------------ | ----- | ---- | ----- | ----- | ---- | - | --- | --- | 
|(in thousands of U.S. dollars) |       | 2005 |       |       | 2004 |  
|                               |       |      |       |       |      |  
|Customer relationships         |       | $    | 1,803 |       |      | $ | 764 |    
|Non-competition covenants      |       |      | 56    |       |      |   | 17  |    
|                               |       |      |       |       |      |  
|                               | Total |      | $     | 1,859 |      |   | $   | 781 | 
|                               |       |      |       |       |      |  





|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 27



---



##### Table of Contents





|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |       |       |  |   |       |       | 
|------------------------------ | ----- | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- |  | ---- | ----- | ----- |  | - | ----- | ----- | 
|Year ended December 31,        |       |      |       |       |      |   |       |       |  |  
|(in thousands of U.S. dollars) |       | 2005 |       |       | 2006 |   |       | 2007  |  |   | 2008  |       |  | 2009 |      
|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |      
|Customer relationships         |       | $    | 7,381 |       |      | $ | 7,401 |       |  | $ | 7,401 |       |  | $    | 7,401 |       |  | $ | 7,401 |      
|Non-competition covenants      |       |      | 173   |       |      |   | 104   |       |  |   | 94    |       |  |      | 13    |       |  |   | 2     |      
|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |      
|                               | Total |      | $     | 7,554 |      |   | $     | 7,505 |  |   | $     | 7,495 |  |      | $     | 7,414 |  |   | $     | 7,403 | 
|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |      

Related Party Transactions




|                                          |  |           |       |   |      |   |       | 
|----------------------------------------- |  | --------- | ----- | - | ---- | - | ----- | 
|                                          |  | March 31, |      
|                                          |  |           |      
|(in thousands of U.S. dollars)            |  | 2005      |       |   | 2004 |  
|                                          |  |           |       |   |      |  
|Northbridge Financial Corporation         |  | $         | 4,635 |   |      | $ | 4,458 | 
|Crum & Forster Holdings, Inc.             |  |           | 178   |   |      |   | 183   | 
|Fairfax Inc.                              |  |           | (253  | ) |      |   | 1,432 | 
|                                          |  |           |       |   |      |  
|                                          |  |           | 4,560 |   |      |   | 6,073 | 
|Old Lyme Insurance Company, Ltd. (OLIC) |  |           | 1,490 |   |      |   |      | 
|                                          |  |           |       |   |      |  
|                                          |  | $         | 6,050 |   |      | $ | 6,073 | 
|                                          |  |           |       |   |      |  







Off-Balance Sheet Transactions








|                            |                                
|--------------------------- | -------------------------------
|28HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents








Item 3. Quantitative and Qualitative Disclosures
about Market Risk







Item 4. Controls and Procedures









PART II. OTHER INFORMATION





Item 1. Legal Proceedings












|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 29



---



##### Table of Contents














Item 2. Unregistered Sales of Equity Securities and
Use of Proceeds







Item 5. Other Information


Information Concerning Forward-Looking Statements






| |   |                                                                                                                                   
| | - | ----------------------------------------------------------------------------------------------------------------------------------
| |  | implementing our business strategies;                                                                                             
|
| |  | identifying and consummating acquisitions;                                                                                        
|
| |  | successfully integrating acquired businesses;                                                                                     
|
| |  | attaining greater market share;                                                                                                   
|
| |  | resolution of regulatory issues and litigation, including those
    related to compensation arrangements with insurance companies;
|
| |  | the possibility that the receipt of contingent compensation from
    insurance companies could be prohibited;                     
|
| |  | developing and implementing effective information technology
    systems;                                                         
|
| |  | recruiting and retaining qualified employees;                                                                                     





|                            |                                
|--------------------------- | -------------------------------
|30HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005



---



##### Table of Contents





| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | fluctuations in the demand for insurance products;                                                                                                           
|
| |  | fluctuations in the premiums charged by insurance companies
    (with corresponding fluctuations in our premium-based revenue);                              
|
| |  | fluctuations in foreign currency exchange rates;                                                                                                             
|
| |  | any loss of services of key executive officers;                                                                                                              
|
| |  | industry consolidation;                                                                                                                                      
|
| |  | increased competition in the industry;                                                                                                                       
|
| |  | the actual costs of resolution of contingent liabilities; and                                                                                                
|
| |  | the passage of new federal, state or provincial legislation
    subjecting our business to increased regulation in the
    jurisdictions in which we operate.





Dividends







Item 6. Exhibits


Exhibits


|     |  |                                                                                                                                                                                                                                                                          
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|10.1 |  | Amending Agreement dated April 20, 2005 by and between Hub
    International Limited and Bank of Montreal.                                                                                                                                                               
|31.1 |  | Certification of the Chief Executive Officer, Martin P. Hughes,
    pursuant to Rule 13a-14(a) or 15d  14(a), as
    enacted pursuant to Section 302 of the Sarbanes-Oxley Act
    of 2002.                                                                             
|31.2 |  | Certification of the Chief Financial Officer, Dennis J. Pauls,
    pursuant to Rule 13a-14(a) or 15d  14(a), as
    enacted pursuant to Section 302 of the Sarbanes-Oxley Act
    of 2002.                                                                              
|32.1 |  | Certification of the Chief Executive Officer, Martin P. Hughes,
    pursuant to 18 U.S.C. Section 1350, as enacted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                        
|32.2 |  | Certification of the Chief Financial Officer, Dennis J. Pauls,
    pursuant to 18 U.S.C. Section 1350, as enacted pursuant to
    Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                         
|99.1 |  | Information under the caption Risks related to our
    business and Risks related to our common
    shares is incorporated by reference from the
    registrants Annual Report on Form 10-K filed with the
    Securities and Exchange Commission on March 16, 2005.





|                                |                             
|------------------------------- | ----------------------------
|QUARTERLY REPORT MARCH 31, 2005 | HUB INTERNATIONAL LIMITED 31



---



##### Table of Contents






SIGNATURE






| |                          
| | -------------------------
| | HUB INTERNATIONAL LIMITED



| |     |                    
| | --- | -------------------
| | By: | /s/ Dennis J. Pauls

| |                                                          
| | ---------------------------------------------------------
| |                                                          
| | Dennis J. Pauls                                          
| | Vice President and Chief Financial Officer               
| | (duly authorized officer and Principal Financial Officer)







|                            |                                
|--------------------------- | -------------------------------
|32HUB INTERNATIONAL LIMITED | QUARTERLY REPORT MARCH 31, 2005