##### 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 August 1, 200530,737,767











---










HUB INTERNATIONAL LIMITED


INDEX


|                                                                                                               |  |      |    | 
|-------------------------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                                                                               |  | Page |   
|                                                                                                               |  |      |   
|PART I. FINANCIAL
    INFORMATION                                                                              |  |      |    | 
|                                                                                                              
|Item 1. Financial Statements
    (Unaudited)                                                                   |  |      | 3  | 
|                                                                                                              
|Consolidated Balance Sheets as of
    June 30, 2005 and December 31, 2004                                      |  |      | 3  | 
|                                                                                                              
|Consolidated Statements of Earnings for the
    three months and six months ended June 30, 2005 and 2004       |  |      | 4  | 
|                                                                                                              
|Consolidated Statements of Retained
    Earnings for the six months ended June 30, 2005 and 2004               |  |      | 5  | 
|                                                                                                              
|Consolidated Statements of Cash Flows for
    the three months and six months ended June 30, 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          |  |      | 22 | 
|                                                                                                              
|Item 3. Quantitative and
    Qualitative Disclosures about Market Risk                                         |  |      | 38 | 
|                                                                                                              
|Item 4. Controls and
    Procedures                                                                            |  |      | 38 | 
|                                                                                                              
|PART II. OTHER
    INFORMATION                                                                                 |  |      |    | 
|                                                                                                              
|Item 1. Legal
    Proceedings                                                                                  |  |      | 38 | 
|                                                                                                              
|Item 2. Unregistered Sales of
    Equity Securities and Use of Proceeds                                        |  |      | 39 | 
|                                                                                                              
|Item 4. Submission of Matters
    to a Vote of Security Holders                                                |  |      | 39 | 
|                                                                                                              
|Item 5. Other
    Information                                                                                  |  |      | 40 | 
|                                                                                                              
|Item 6. Exhibits                                                                                               |  |      | 41 | 
|                                                                                                              
|SIGNATURE                                                                                                      |  |      | 42 | 
|EXHIBIT 31.1                                                                                                  
|EXHIBIT 31.2                                                                                                  
|EXHIBIT 32.1                                                                                                  
|EXHIBIT 32.2                                                                                                  







|                           |                               
|-------------------------- | ------------------------------
|2HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents






PART I. FINANCIAL INFORMATION





Item 1. Financial Statements (Unaudited)


Hub International Limited





Consolidated Balance Sheets


As of June 30, 2005 and December 31, 2004


(in thousands of U.S. dollars)


|                                                  |  |             |         |  |      |   |         | 
|------------------------------------------------- |  | ----------- | ------- |  | ---- | - | ------- | 
|                                                  |  | 2005        |         |  | 2004 |  
|                                                  |  |             |         |  |      |  
|                                                  |  | (Unaudited) |         |  |     
|ASSETS                                            |  |             |         |  |      |   |         | 
|                                                 
|Current assets:                                   |  |             |         |  |      |   |         | 
|Cash and cash equivalents                         |  | $           | 114,577 |  |      | $ | 98,204  | 
|Trust cash                                        |  |             | 71,175  |  |      |   | 71,718  | 
|Accounts and other receivables                    |  |             | 229,353 |  |      |   | 162,841 | 
|Income taxes receivable                           |  |             | 5,961   |  |      |   | 6,208   | 
|Future income taxes                               |  |             | 6,260   |  |      |   | 3,901   | 
|Prepaid expenses                                  |  |             | 6,924   |  |      |   | 5,835   | 
|                                                  |  |             |         |  |      |  
|Total current assets                              |  |             | 434,250 |  |      |   | 348,707 | 
|Goodwill                                          |  |             | 382,073 |  |      |   | 376,676 | 
|Other intangible assets                           |  |             | 87,524  |  |      |   | 88,842  | 
|Property and equipment                            |  |             | 26,648  |  |      |   | 27,907  | 
|Future income taxes                               |  |             | 9,470   |  |      |   | 4,368   | 
|Other assets                                      |  |             | 10,082  |  |      |   | 11,035  | 
|                                                  |  |             |         |  |      |  
|Total assets                                      |  | $           | 950,047 |  |      | $ | 857,535 | 
|                                                  |  |             |         |  |      |  
|                                                 
|LIABILITIES AND SHAREHOLDERS EQUITY              |  |             |         |  |      |   |         | 
|                                                 
|Current liabilities:                              |  |             |         |  |      |   |         | 
|Accounts payable and accrued liabilities          |  | $           | 341,782 |  |      | $ | 271,843 | 
|Income taxes payable                              |  |             | 6,566   |  |      |   | 2,273   | 
|Future income taxes                               |  |             | 404     |  |      |   | 34      | 
|Current portion long-term debt and capital leases |  |             | 5,074   |  |      |   | 5,195   | 
|                                                  |  |             |         |  |      |  
|Total current liabilities                         |  |             | 353,826 |  |      |   | 279,345 | 
|                                                 
|Long-term debt and capital leases                 |  |             | 137,051 |  |      |   | 146,602 | 
|Subordinated convertible debentures               |  |             | 35,000  |  |      |   | 35,000  | 
|Future income taxes                               |  |             | 20,557  |  |      |   | 14,805  | 
|                                                  |  |             |         |  |      |  
|Total liabilities                                 |  |             | 546,434 |  |      |   | 475,752 | 
|                                                  |  |             |         |  |      |  
|                                                 
|Commitments and Contingencies                     |  |             |         |  |      |   |         | 
|                                                 
|Shareholders equity                              |  |             |         |  |      |   |         | 
|Share capital                                     |  |             | 262,945 |  |      |   | 259,617 | 
|Contributed surplus                               |  |             | 15,979  |  |      |   | 12,681  | 
|Cumulative translation account                    |  |             | 25,117  |  |      |   | 26,983  | 
|Retained earnings                                 |  |             | 99,572  |  |      |   | 82,502  | 
|                                                  |  |             |         |  |      |  
|Total shareholders equity                        |  |             | 403,613 |  |      |   | 381,783 | 
|                                                  |  |             |         |  |      |  
|Total liabilities and shareholders equity        |  | $           | 950,047 |  |      | $ | 857,535 | 
|                                                  |  |             |         |  |      |  

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






|                               |                            
|------------------------------ | ---------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 3



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##### Table of Contents



Hub International Limited





Consolidated Statements of Earnings


For the three months and six months ended June 30, 2005
and 2004


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


(Unaudited)


|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |         |   |   |         |         |  
|--------------------------------------------------------- | --------------------------------------------------------------------------------- | -------------- | ------- | ------- | ---------------- | - | ------ | ------ | - | - | ------- | ------- | - | - | ------- | ------- | -
|                                                          |                                                                                   | Second quarter |         |         | First six months |  
|                                                          |                                                                                   |                |         |         |                  |  
|                                                          |                                                                                   | 2005           |         |         | 2004             |   |        | 2005   |   |   | 2004    |        
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|Revenue                                                   |                                                                                   |                |         |         |                  |   |        |        |   |   |         |         |   |   |         |        
|                                                          | Commission income                                                                 |                | $       | 105,418 |                  |   | $      | 76,922 |   |   | $       | 194,387 |   |   | $       | 138,507 |  
|                                                          | Contingent commissions and volume overrides                                       |                |         | 4,244   |                  |   |        | 3,038  |   |   |         | 33,404  |   |   |         | 18,075  |  
|                                                          | Other                                                                             |                |         | 3,004   |                  |   |        | 2,271  |   |   |         | 6,572   |   |   |         | 4,998   |  
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|                                                          |                                                                                   |                | 112,666 |         |                  |   | 82,231 |        |   |   | 234,363 |         |   |   | 161,580 |        
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|Expenses                                                  |                                                                                   |                |         |         |                  |   |        |        |   |   |         |         |   |   |         |        
|                                                          | Cash compensation                                                                 |                |         | 61,447  |                  |   |        | 42,114 |   |   |         | 125,300 |   |   |         | 82,751  |  
|                                                          | Selling, occupancy and administration                                             |                |         | 20,693  |                  |   |        | 16,086 |   |   |         | 40,746  |   |   |         | 31,639  |  
|                                                          | Depreciation                                                                      |                |         | 2,134   |                  |   |        | 1,730  |   |   |         | 4,215   |   |   |         | 3,317   |  
|                                                          | Interest expense                                                                  |                |         | 2,588   |                  |   |        | 1,702  |   |   |         | 4,991   |   |   |         | 3,362   |  
|                                                          | Intangible asset amortization                                                     |                |         | 1,888   |                  |   |        | 936    |   |   |         | 3,747   |   |   |         | 1,717   |  
|                                                          | Non-cash stock based compensation                                                 |                |         | 10,652  |                  |   |        | 1,701  |   |   |         | 19,650  |   |   |         | 3,315   |  
|                                                          | Gain on forgiveness of debt                                                       |                |         |        |                  |   |        |       |   |   |         | (4,500  | ) |   |         |        |  
|                                                          | (Gain)/loss on disposal of subsidiaries, property, equipment and
    other assets |                |         | 18      |                  |   |        | (597   | ) |   |         | (2,394  | ) |   |         | (559    | )
|                                                          | Loss on write-off of trademarks                                                   |                |         |        |                  |   |        |       |   |   |         |        |   |   |         | 2,587   |  
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|                                                          |                                                                                   |                | 99,420  |         |                  |   | 63,672 |        |   |   | 191,755 |         |   |   | 128,129 |        
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|Net earnings before income taxes                          |                                                                                   |                | 13,246  |         |                  |   | 18,559 |        |   |   | 42,608  |         |   |   | 33,451  |        
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|Provision for income tax expense (benefit)                |                                                                                   |                |         |         |                  |   |        |        |   |   |         |         |   |   |         |        
|                                                          | Current                                                                           |                |         | 8,902   |                  |   |        | 4,992  |   |   |         | 22,756  |   |   |         | 11,730  |  
|                                                          | Future                                                                            |                |         | 75      |                  |   |        | 1,976  |   |   |         | (897    | ) |   |         | 507     |  
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|                                                          |                                                                                   |                | 8,977   |         |                  |   | 6,968  |        |   |   | 21,859  |         |   |   | 12,237  |        
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|Net earnings                                              |                                                                                   | $              | 4,269   |         |                  | $ | 11,591 |        |   | $ | 20,749  |         |   | $ | 21,214  |        
|                                                          |                                                                                   |                |         |         |                  |   |        |        |   |   |         |        
|Earnings per share                                        |                                                                                   |                |         |         |                  |   |        |        |   |   |         |         |   |   |         |        
|                                                          | Basic                                                                             |                | $       | 0.14    |                  |   | $      | 0.38   |   |   | $       | 0.68    |   |   | $       | 0.70    |  
|                                                          | Diluted                                                                           |                | $       | 0.12    |                  |   | $      | 0.35   |   |   | $       | 0.59    |   |   | $       | 0.64    |  
|Weighted average shares outstanding
     Basic (000s)   |                                                                                   |                | 30,441  |         |                  |   | 30,189 |        |   |   | 30,405  |         |   |   | 30,102  |        
|Weighted average shares outstanding
     Diluted (000s) |                                                                                   |                | 34,713  |         |                  |   | 34,905 |        |   |   | 36,994  |         |   |   | 34,711  |        

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






|                           |                               
|-------------------------- | ------------------------------
|4HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents



Hub International Limited





Consolidated Statements of Retained Earnings


For the six months ended June 30, 2005 and 2004


(in thousands of U.S. dollars)


(Unaudited)


|                                        |  |      |        |   |      |   |        |  
|--------------------------------------- |  | ---- | ------ | - | ---- | - | ------ | -
|                                        |  | 2005 |        |   | 2004 |  
|                                        |  |      |        |   |      |  
|Retained earnings  Beginning of period |  | $    | 82,502 |   |      | $ | 62,356 |  
|Net earnings                            |  |      | 20,749 |   |      |   | 21,214 |  
|Dividends                               |  |      | (3,679 | ) |      |   | (3,043 | )
|                                        |  |      |        |   |      |  
|Retained earnings  End of period       |  | $    | 99,572 |   |      | $ | 80,527 |  
|                                        |  |      |        |   |      |  

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






|                               |                            
|------------------------------ | ---------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 5



---



##### Table of Contents



Hub International Limited





Consolidated Statements of Cash Flows


For the three months and six months ended June 30, 2005
and 2004


(in thousands of U.S. dollars)


(Unaudited)


|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |         |   |   |         |        |  
|---------------------------------------------------------------- | --------------------------------------------------------------------------------- | -------------- | ------- | ------- | ---------------- | - | ------- | ------- | - | - | ------- | ------- | - | - | ------- | ------ | -
|                                                                 |                                                                                   | Second quarter |         |         | First six months |  
|                                                                 |                                                                                   |                |         |         |                  |  
|                                                                 |                                                                                   | 2005           |         |         | 2004             |   |         | 2005    |   |   | 2004    |        
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|OPERATING ACTIVITIES                                             |                                                                                   |                |         |         |                  |   |         |         |   |   |         |         |   |   |         |       
|Net earnings                                                     |                                                                                   | $              | 4,269   |         |                  | $ | 11,591  |         |   | $ | 20,749  |         |   | $ | 21,214  |       
|Items not affecting cash                                         |                                                                                   |                |         |         |                  |   |         |         |   |   |         |         |   |   |         |       
|                                                                 | Amortization and depreciation                                                     |                |         | 4,022   |                  |   |         | 2,666   |   |   |         | 7,962   |   |   |         | 5,034  |  
|                                                                 | (Gain)/loss on disposal of subsidiaries, property, equipment and
    other assets |                |         | 18      |                  |   |         | (597    | ) |   |         | (2,394  | ) |   |         | (559   | )
|                                                                 | Non-cash stock based compensation                                                 |                |         | 10,652  |                  |   |         | 1,701   |   |   |         | 19,650  |   |   |         | 3,315  |  
|                                                                 | Gain on forgiveness of debt                                                       |                |         |        |                  |   |         |        |   |   |         | (4,500  | ) |   |         |       |  
|                                                                 | Loss on write-off of trademarks                                                   |                |         |        |                  |   |         |        |   |   |         |        |   |   |         | 2,587  |  
|                                                                 | Future income taxes                                                               |                |         | 75      |                  |   |         | 1,976   |   |   |         | (897    | ) |   |         | 507    |  
|Non-cash working capital items                                   |                                                                                   |                |         |         |                  |   |         |         |   |   |         |         |   |   |         |       
|                                                                 | Trust cash                                                                        |                |         | (9,302  | )                |   |         | (10,373 | ) |   |         | 5,764   |   |   |         | 30     |  
|                                                                 | Accounts and other receivables                                                    |                |         | (75,553 | )                |   |         | (59,781 | ) |   |         | (42,268 | ) |   |         | (8,368 | )
|                                                                 | Prepaid expenses                                                                  |                |         | (1,685  | )                |   |         | (3,520  | ) |   |         | (916    | ) |   |         | (3,366 | )
|                                                                 | Accounts payable and accrued liabilities                                          |                |         | 85,667  |                  |   |         | 66,939  |   |   |         | 19,802  |   |   |         | (3,330 | )
|                                                                 | Other assets                                                                      |                |         | 129     |                  |   |         | 128     |   |   |         | 257     |   |   |         | 256    |  
|                                                                 | Income taxes                                                                      |                |         | (3,834  | )                |   |         | (1,566  | ) |   |         | 4,563   |   |   |         | (176   | )
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|Net cash flows from operating activities                         |                                                                                   |                | 14,458  |         |                  |   | 9,164   |         |   |   | 27,772  |         |   |   | 17,144  |       
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|INVESTING ACTIVITIES                                             |                                                                                   |                |         |         |                  |   |         |         |   |   |         |         |   |   |         |       
|Property and equipment  purchases                               |                                                                                   |                | (1,721  | )       |                  |   | (1,465  | )       |   |   | (2,657  | )       |   |   | (2,850  | )     
|Property and equipment  proceeds on sale                        |                                                                                   |                | 13      |         |                  |   | 14      |         |   |   | 14      |         |   |   | 81      |       
|Purchase of subsidiaries, net of cash received                   |                                                                                   |                | (7,960  | )       |                  |   | (11,621 | )       |   |   | (7,977  | )       |   |   | (11,878 | )     
|Sale of subsidiaries                                             |                                                                                   |                | (111    | )       |                  |   | 3,929   |         |   |   | 3,765   |         |   |   | 3,929   |       
|Other assets                                                     |                                                                                   |                | 126     |         |                  |   | (302    | )       |   |   | 4,520   |         |   |   | 255     |       
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|Net cash flows (used for) investing activities                   |                                                                                   |                | (9,653  | )       |                  |   | (9,445  | )       |   |   | (2,335  | )       |   |   | (10,463 | )     
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|                                                                
|FINANCING ACTIVITIES                                             |                                                                                   |                |         |         |                  |   |         |         |   |   |         |         |   |   |         |       
|Long-term debt and capital leases  advances                     |                                                                                   |                |        |         |                  |   | 65,000  |         |   |   |        |         |   |   | 65,000  |       
|Long-term debt and capital leases  repayments                   |                                                                                   |                | (934    | )       |                  |   | (3,680  | )       |   |   | (5,198  | )       |   |   | (4,690  | )     
|Proceeds from exercise of stock options                          |                                                                                   |                | 124     |         |                  |   | 412     |         |   |   | 628     |         |   |   | 480     |       
|Proceeds from sale of executive purchase plan shares             |                                                                                   |                | 35      |         |                  |   |        |         |   |   | 35      |         |   |   |        |       
|Dividends paid                                                   |                                                                                   |                | (1,844  | )       |                  |   | (3,043  | )       |   |   | (3,679  | )       |   |   | (3,043  | )     
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|Net cash flows from (used for) financing activities              |                                                                                   |                | (2,619  | )       |                  |   | 58,689  |         |   |   | (8,214  | )       |   |   | 57,747  |       
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|Effect of exchange rate changes on cash and cash
    equivalents |                                                                                   |                | (501    | )       |                  |   | (1,185  | )       |   |   | (850    | )       |   |   | (1,953  | )     
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|Change in cash and cash equivalents                              |                                                                                   |                | 1,685   |         |                  |   | 57,223  |         |   |   | 16,373  |         |   |   | 62,475  |       
|Cash and cash equivalents  Beginning of period                  |                                                                                   |                | 112,892 |         |                  |   | 87,304  |         |   |   | 98,204  |         |   |   | 82,052  |       
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        
|Cash and cash equivalents  End of period                        |                                                                                   | $              | 114,577 |         |                  | $ | 144,527 |         |   | $ | 114,577 |         |   | $ | 144,527 |       
|                                                                 |                                                                                   |                |         |         |                  |   |         |         |   |   |         |        

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






|                           |                               
|-------------------------- | ------------------------------
|6HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents



Hub International Limited





Notes to Interim Consolidated Financial Statements


For the three months and six months ended June 30, 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 $52  $55 million, of which
    $8.7 million and $15.9 million were recognized in the
    three months and six months ended June 30, 2005
    respectively, and $30.3 million has been recognized in
    total from the date of acquisition through June 30, 2005 as
    an expense with an offsetting credit to accounts payable and
    accrued liabilities. A payment in the form of cash or common
    shares of the Company of $16.4 million will be paid to
    Talbot management on September 1, 2005.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | In connection with other various acquisitions completed through
    June 30, 2005, the Company may be obligated to pay
    contingent consideration up to a maximum sum of approximately
    $14.9 million in cash and $8.8 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 July
    2009 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
    June 30, 2005, the financial statements reflect a liability
    to pay cash of $2.2 million and to issue common shares
    valued at approximately $0.1 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 $3,941 and





|                               |                            
|------------------------------ | ---------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 7



---



##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | $4,287 as of June 30, 2005 and
    December 31, 2004 respectively, to assist in purchasing
    common shares of the Company. As collateral, the employees have
    pledged 407,000 and 431,000 of the Companys
    common shares as of June 30, 2005 and December 31, 2004,
    respectively, which have a market value of $7,934 and
    $7,885 as of June 30, 2005 and December 31, 2004,
    respectively. Interest on the loans in the amount of $47
    and $45 for the three months ended June 30, 2005 and 2004,
    respectively, and $96 for both the six months ended
    June 30, 2005 and 2004 was paid by the Company and is
    included in cash compensation expense.



|   |             
|-- | ------------
|4. | Acquisitions







|                                                 |  |             |         |   |         |   |       |       |  |   |         |  
|------------------------------------------------ |  | ----------- | ------- | - | ------- | - | ----- | ----- |  | - | ------- | -
|                                                 |  | THB         |         |   | Other   |   |       | Total | 
|                                                 |  |             |         |   |         |   |       |       | 
|Acquisition Date                                 |  | May 2, 2005 |         |   | Various |   |       |      
|Current assets                                   |  | $           | 33,373  |   |         | $ |      |       |  | $ | 33,373  |  
|Current liabilities                              |  |             | (32,660 | ) |         |   |      |       |  |   | (32,660 | )
|Property, equipment and other assets             |  |             | 611     |   |         |   |      |       |  |   | 611     |  
|                                                 |  |             |         |   |         |   |       |       | 
|Net assets at fair value                         |  | $           | 1,324   |   |         | $ |      |       |  | $ | 1,324   |  
|                                                 |  |             |         |   |         |   |       |       | 
|Consideration                                    |  |             |         |   |         |   |       |       |  |   |         |  
|Cash                                             |  | $           | 4,305   |   |         | $ | 4,262 |       |  | $ | 8,567   |  
|Payable                                          |  |             | 916     |   |         |   | 749   |       |  |   | 1,665   |  
|Common shares (at market value)                  |  |             | 380     |   |         |   | 1,729 |       |  |   | 2,109   |  
|                                                 |  |             |         |   |         |   |       |       | 
|                                                 |  | $           | 5,601   |   |         | $ | 6,740 |       |  | $ | 12,341  |  
|                                                 |  |             |         |   |         |   |       |       | 
|Goodwill                                         |  | $           | 2,596   |   |         | $ | 5,967 |       |  | $ | 8,563   |  
|Customer relationships                           |  |             | 1,681   |   |         |   | 773   |       |  |   | 2,454   |  
|                                                 |  |             |         |   |         |   |       |       | 
|                                                 |  | $           | 4,277   |   |         | $ | 6,740 |       |  | $ | 11,017  |  
|                                                 |  |             |         |   |         |   |       |       | 
|Number of shares issued as consideration (000s) |  |             | 20      |   |         |   | 96    |       |  |   | 116     |  
|                                                 |  |             |         |   |         |   |       |       | 







|                           |                               
|-------------------------- | ------------------------------
|8HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents





|   |                               
|-- | ------------------------------
|5. | Accounts and Other Receivables



|                                         |  |          |         |   |              |   |         |  
|---------------------------------------- |  | -------- | ------- | - | ------------ | - | ------- | -
|                                         |  | June 30, |         |   | December 31, |  
|                                         |  | 2005     |         |   | 2004         |  
|                                         |  |          |         |   |              |  
|Client premiums receivable               |  | $        | 176,204 |   |              | $ | 128,345 |  
|Commissions receivable                   |  |          | 53,333  |   |              |   | 31,565  |  
|Less: Allowance for doubtful accounts    |  |          | (1,908  | ) |              |   | (1,436  | )
|Less: Allowance for policy cancellations |  |          | (2,206  | ) |              |   | (1,876  | )
|                                         |  |          |         |   |              |  
|                                         |  |          | 225,423 |   |              |   | 156,598 |  
|Other receivables                        |  |          | 3,930   |   |              |   | 6,243   |  
|                                         |  |          |         |   |              |  
|                                         |  | $        | 229,353 |   |              | $ | 162,841 |  
|                                         |  |          |         |   |              |  



|   |                  
|-- | -----------------
|6. | Intangible Assets



|                                   |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |   |        |        |  |   |        |        | 
|---------------------------------- | ------------------------- | ------------------- | ------- | ------ | ----------------------- | - | ------ | ------ |  | -------- | ------ | ------ | ----------- | ------------ | ------- | ------ | ----- | - | ------ | ------ |  | - | ------ | ------ | 
|                                   |                           | As of June 30, 2005 |         |        | As of December 31, 2004 |  
|                                   |                           |                     |         |        |                         |  
|                                   |                           | Gross               |         |        |                         |   | Gross  |        |  |         
|                                   |                           | Carrying            |         |        | Accumulated             |   |        |        |  | Carrying |        |        | Accumulated |              |         |       
|                                   |                           | Amount              |         |        | Amortization            |   |        | Total  |  |          | Amount |        |             | Amortization |         |        | Total |  
|                                   |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  
|Definite life intangible assets:   |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |   |        |        |  |   |        |       
|                                   | Customer relationships    |                     | $       | 98,411 |                         |   | $      | 14,440 |  |          | $      | 83,971 |             |              | $       | 95,982 |       |   | $      | 10,802 |  |   | $      | 85,180 | 
|                                   | Non-competition covenants |                     |         | 816    |                         |   |        | 553    |  |          |        | 263    |             |              |         | 791    |       |   |        | 448    |  |   |        | 343    | 
|                                   |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  
|                                   |                           |                     | 99,227  |        |                         |   | 14,993 |        |  |          | 84,234 |        |             |              | 96,773  |        |       |   | 11,250 |        |  |   | 85,523 |       
|Indefinite life intangible assets: |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |   |        |        |  |   |        |       
|                                   | Non-competition covenants |                     |         | 3,290  |                         |   |        |       |  |          |        | 3,290  |             |              |         | 3,319  |       |   |        |       |  |   |        | 3,319  | 
|                                   |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  
|Total                              |                           | $                   | 102,517 |        |                         | $ | 14,993 |        |  | $        | 87,524 |        |             | $            | 100,092 |        |       | $ | 11,250 |        |  | $ | 88,842 |       
|                                   |                           |                     |         |        |                         |   |        |        |  |          |        |        |             |              |         |        |       |  





|                                   |                           |      |       |       |      |   |       |       | 
|---------------------------------- | ------------------------- | ---- | ----- | ----- | ---- | - | ----- | ----- | 
|                                   |                           | 2005 |       |       | 2004 |  
|                                   |                           |      |       |       |      |  
|Definite life intangible assets:   |                           |      |       |       |      |   |       |      
|                                   | Customer relationships    |      | $     | 2,454 |      |   | $     | 7,204 | 
|                                   | Non-competition covenants |      |       |      |      |   |       |      | 
|                                   |                           |      |       |       |      |  
|                                   |                           |      | 2,454 |       |      |   | 7,204 |      
|Indefinite life intangible assets: |                           |      |       |       |      |   |       |      
|                                   | Non-competition covenants |      |       |      |      |   |       | 781   | 
|                                   |                           |      |       |       |      |  
|Total                              |                           | $    | 2,454 |       |      | $ | 7,985 |      
|                                   |                           |      |       |       |      |  





|                               |                            
|------------------------------ | ---------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 9



---



##### Table of Contents





|                                  |  |            |        |   |            |   |         |       |  |   |         |  
|--------------------------------- |  | ---------- | ------ | - | ---------- | - | ------- | ----- |  | - | ------- | -
|                                  |  | 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     |  |            |       |   |            |   | 9,341   |       |  |   | 9,341   |  
|Goodwill disposed during 2005     |  |            | (1,942 | ) |            |   | (293    | )     |  |   | (2,235  | )
|Cumulative translation adjustment |  |            | (1,709 | ) |            |   |        |       |  |   | (1,709  | )
|                                  |  |            |        |   |            |   |         |       | 
|Balance as of June 30, 2005       |  | $          | 91,671 |   |            | $ | 290,402 |       |  | $ | 382,073 |  
|                                  |  |            |        |   |            |   |         |       | 



|                          |  |                      |       |  |                    |   |     |      |  |   |       |  |  |   |       | 
|------------------------- |  | -------------------- | ----- |  | ------------------ | - | --- | ---- |  | - | ----- |  |  | - | ----- | 
|                          |  | For the three months |       |  | For the six months |  
|                          |  | ended June 30,       |       |  | ended June 30,     |  
|                          |  |                      |       |  |                    |  
|                          |  | 2005                 |       |  | 2004               |   |     | 2005 |  |   | 2004  | 
|                          |  |                      |       |  |                    |   |     |      |  |   |       | 
|Customer relationships    |  | $                    | 1,839 |  |                    | $ | 893 |      |  | $ | 3,642 |  |  | $ | 1,657 | 
|Non-competition covenants |  |                      | 49    |  |                    |   | 43  |      |  |   | 105   |  |  |   | 60    | 
|                          |  |                      |       |  |                    |   |     |      |  |   |       | 
|Total                     |  | $                    | 1,888 |  |                    | $ | 936 |      |  | $ | 3,747 |  |  | $ | 1,717 | 
|                          |  |                      |       |  |                    |   |     |      |  |   |       | 



|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |       |  |  |   |       | 
|------------------------- |  | ---- | ----- |  | ---- | - | ----- | ---- |  | - | ----- |  |  | ---- | ----- |  |  | - | ----- | 
|                          |  | 2005 |       |  | 2006 |   |       | 2007 |  |   | 2008  |  |  | 2009 |      
|Year ended December 31,   |  |      |       |  |      |   |       |      |  |   |       |  |  |      |      
|Customer relationships    |  | $    | 7,671 |  |      | $ | 7,678 |      |  | $ | 7,678 |  |  | $    | 7,678 |  |  | $ | 7,678 | 
|Non-competition covenants |  |      | 156   |  |      |   | 102   |      |  |   | 95    |  |  |      | 2     |  |  |   | 1     | 
|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |      
|Total                     |  | $    | 7,827 |  |      | $ | 7,780 |      |  | $ | 7,773 |  |  | $    | 7,680 |  |  | $ | 7,679 | 
|                          |  |      |       |  |      |   |       |      |  |   |       |  |  |      |      



|   |                                         
|-- | ----------------------------------------
|7. | Accounts Payable and Accrued Liabilities



|                                                       |  |          |         |  |              |   |         | 
|------------------------------------------------------ |  | -------- | ------- |  | ------------ | - | ------- | 
|                                                       |  | June 30, |         |  | December 31, |  
|                                                       |  | 2005     |         |  | 2004         |  
|                                                       |  |          |         |  |              |  
|Insurance premiums payable                             |  | $        | 234,759 |  |              | $ | 198,901 | 
|Other accounts payable and accrued liabilities         |  |          | 76,720  |  |              |   | 58,554  | 
|Stock based compensation related to Talbot acquisition |  |          | 30,303  |  |              |   | 14,388  | 
|                                                       |  |          |         |  |              |  
|                                                       |  | $        | 341,782 |  |              | $ | 271,843 | 
|                                                       |  |          |         |  |              |  





|                            |                               
|--------------------------- | ------------------------------
|10HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents





|   |     
|-- | ----
|8. | Debt

Long-term debt and capital leases


|                                                       |  |          |         |   |              |   |         |  
|------------------------------------------------------ |  | -------- | ------- | - | ------------ | - | ------- | -
|                                                       |  | June 30, |         |   | 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)     |  |          | 8,606   |   |              |   | 10,329  |  
|Capital leases (4)                                     |  |          | 319     |   |              |   | 468     |  
|                                                       |  |          |         |   |              |  
|Long-term debt and capital leases                      |  |          | 142,125 |   |              |   | 151,797 |  
|Less current portion                                   |  |          | (5,074  | ) |              |   | (5,195  | )
|                                                       |  |          |         |   |              |  
|                                                       |  | $        | 137,051 |   |              | $ | 146,602 |  
|                                                       |  |          |         |   |              |  



|                                     |  |   |         | 
|------------------------------------ |  | - | ------- | 
|For the twelve months ended June 30, |  |   |         | 
|2006                                 |  | $ | 5,074   | 
|2007                                 |  |   | 3,814   | 
|2008                                 |  |   | 5,697   | 
|2009                                 |  |   | 80,206  | 
|2010                                 |  |   | 14,334  | 
|2011 and thereafter                  |  |   | 33,000  | 
|                                     |  |   |        
|                                     |  | $ | 142,125 | 
|                                     |  |   |        








|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Senior Notes  As at June 30, 2005 the Company
    had 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
    $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 17, 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 June 30, 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 0.47% and 1.98% for the three months
    ended June 30, 2005 and 2004, respectively and 0.72% and
    2.19% for the six months ended June 30, 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 June 30, 2005, the Company estimated the
    fair value of the swap to be $2.2 million, which is not
    recognized in these financial statements. Accordingly,
    $2.2 million is the estimated amount that the Company would
    need to pay to terminate the swap as of June 30, 2005.





|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 11



---



##### Table of Contents





|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 3.34% and 2.40% at June 30, 2005 and December 31,
    2004, respectively. The facility is available on a revolving
    basis for one year. In April 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 June 30, 2005 and
    December 31, 2004. As of June 30, 2005, the Company
    was in compliance with all financial covenants governing this
    facility.
|   
|(3) | During the first quarter 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 first quarter
    2005. Interest expense on this loan totaled $0.2 million
    and $0.4 million for the three months and six months ended
    June 30, 2004 (which was subsequently reduced to zero in
    the fourth quarter 2004).                                                         
|   
|(4) | Certain property and equipment have been pledged as collateral
    in amounts not less than the outstanding balance of the loan at
    June 30, 2005 and December 31, 2004, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       




Demand U.S. dollar base rate loan




Subordinated convertible debentures






|   |                     
|-- | --------------------
|9. | Shareholders Equity

Share capital








|                            |                               
|--------------------------- | ------------------------------
|12HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents





|                                                          |  |               |        |  |        |   |         | 
|--------------------------------------------------------- |  | ------------- | ------ |  | ------ | - | ------- | 
|                                                          |  | Common shares |       
|                                                          |  | outstanding   |       
|                                                          |  |               |       
|                                                          |  | (000s)       |        |  | Amount |  
|                                                          |  |               |        |  |        |  
|Balance, December 31, 2004                                |  |               | 30,411 |  |        | $ | 259,617 | 
|Shares issued                                             |  |               | 20     |  |        |   | 380     | 
|Shares issued for contingent consideration                |  |               | 96     |  |        |   | 1,729   | 
|Stock options exercised                                   |  |               | 41     |  |        |   | 627     | 
|Restricted share units released                           |  |               | 27     |  |        |   | 466     | 
|Executive share purchase plan shares, net of cancellation |  |               | 9      |  |        |   | 126     | 
|                                                          |  |               |        |  |        |  
|Balance, June 30, 2005                                    |  |               | 30,604 |  |        | $ | 262,945 | 
|                                                          |  |               |        |  |        |  

Contributed surplus


|                                  |  |        |        |  
|--------------------------------- |  | ------ | ------ | -
|                                  |  | Amount |       
|                                  |  |        |       
|Balance, December 31, 2004        |  | $      | 12,681 |  
|Non-cash stock based compensation |  |        | 3,692  |  
|Other                             |  |        | (394   | )
|                                  |  |        |       
|Balance, June 30, 2005            |  | $      | 15,979 |  
|                                  |  |        |       

Cumulative translation account


|                                                                        |  |        |        |  
|----------------------------------------------------------------------- |  | ------ | ------ | -
|                                                                        |  | Amount |       
|                                                                        |  |        |       
|Balance December 31, 2004                                               |  | $      | 26,983 |  
|Translation of self-sustaining foreign operations                       |  |        | (1,872 | )
|Translation of debt financing of self-sustaining foreign
    operations |  |        | 6      |  
|                                                                        |  |        |       
|Balance, June 30 2005                                                   |  | $      | 25,117 |  
|                                                                        |  |        |       



|    |                      
|--- | ---------------------
|10. | Equity Incentive Plan





|                           |  |         |       |   |                  |   |       | 
|-------------------------- |  | ------- | ----- | - | ---------------- | - | ----- | 
|                           |  | Number  |       |   | Weighted-Average |  
|                           |  | (000s) |       |   | Exercise Price   |  
|                           |  |         |       |   |                  |  
|Balance, December 31, 2004 |  |         | 1,456 |   |                  | $ | 15.34 | 
|Granted                    |  |         |      |   |                  | $ |      | 
|Exercised                  |  |         | (41   | ) |                  | $ | 15.15 | 
|Forfeited                  |  |         | (2    | ) |                  | $ | 15.67 | 
|Expired                    |  |         | (1    | ) |                  | $ | 15.67 | 
|                           |  |         |       |   |                  |  
|Balance, June 30 2005      |  |         | 1,412 |   |                  | $ | 15.35 | 
|                           |  |         |       |   |                  |  





|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 13



---



##### Table of Contents





|               |  |               |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             |  |            |  |  |  |     | 
|-------------- |  | ------------- | ----- |  | ----------------- |  | ---------- | ----------- |  |  | ----------- |  |  | ---------------- | ----- |  | ----------- |  | ---------- |  |  |  | --- | 
|               |  | June 30, 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         |  |               | 1,169 |  |                   |  | 3.96 years |             |  |  | 1,169       |  |  |                  | 1,201 |  |             |  | 4.42 years |  |  |  | 812 | 
|$13.79         |  |               | 243   |  |                   |  | 4.56 years |             |  |  | 172         |  |  |                  | 255   |  |             |  | 5.16 years |  |  |  | 96  | 
|               |  |               |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             | 
|               |  |               | 1,412 |  |                   |  | 4.06 years |             |  |  | 1,341       |  |  |                  | 1,456 |  |             |  | 4.55 years |  |  |  | 908 | 
|               |  |               |       |  |                   |  |            |             |  |  |             |  |  |                  |       |  |             | 









|                                   |                                                                 |                      |        |       |                    |   |       |      |  |   |        |        |  |   |       |       | 
|---------------------------------- | --------------------------------------------------------------- | -------------------- | ------ | ----- | ------------------ | - | ----- | ---- |  | - | ------ | ------ |  | - | ----- | ----- | 
|                                   |                                                                 | For the three months |        |       | For the six months |  
|                                   |                                                                 | ended June 30,       |        |       | ended June 30,     |  
|                                   |                                                                 |                      |        |       |                    |  
|                                   |                                                                 | 2005                 |        |       | 2004               |   |       | 2005 |  |   | 2004   |       
|                                   |                                                                 |                      |        |       |                    |   |       |      |  |   |        |       
|Non-cash stock based compensation: |                                                                 |                      |        |       |                    |   |       |      |  |   |        |        |  |   |       |      
|                                   | Stock options granted June 2002                                 |                      | $      | 389   |                    |   | $     | 510  |  |   | $      | 851    |  |   | $     | 1,001 | 
|                                   | Stock options granted February 2003                             |                      |        | 90    |                    |   |       | 128  |  |   |        | 190    |  |   |       | 230   | 
|                                   | Stock based compensation granted for 2003 bonuses               |                      |        | 780   |                    |   |       | 634  |  |   |        | 1,514  |  |   |       | 1,267 | 
|                                   | Restricted share units                                          |                      |        | 403   |                    |   |       | 429  |  |   |        | 818    |  |   |       | 817   | 
|                                   | Restricted share units  EMT                                    |                      |        | 258   |                    |   |       |     |  |   |        | 344    |  |   |       |      | 
|                                   | Other                                                           |                      |        | 11    |                    |   |       |     |  |   |        | 18     |  |   |       |      | 
|                                   |                                                                 |                      |        |       |                    |   |       |      |  |   |        |       
|                                   |                                                                 |                      | 1,931  |       |                    |   | 1,701 |      |  |   | 3,735  |        |  |   | 3,315 |      
|                                   | Non-cash stock based compensation related to Talbot acquisition |                      |        | 8,721 |                    |   |       |     |  |   |        | 15,915 |  |   |       |      | 
|                                   |                                                                 |                      |        |       |                    |   |       |      |  |   |        |       
|                                   |                                                                 | $                    | 10,652 |       |                    | $ | 1,701 |      |  | $ | 19,650 |        |  | $ | 3,315 |      
|                                   |                                                                 |                      |        |       |                    |   |       |      |  |   |        |       





|                            |                               
|--------------------------- | ------------------------------
|14HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 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     |  |      | 2,671  |  |      |   | 2,227  |      |  |   | 2,136 |  |  |      | 2,136 |  |      |   | 2,136 |  |  |   | 2,062 | 
|Stock based compensation regarding Talbot acquisition |  |      | 27,780 |  |      |   | 9,293  |      |  |   | 1,668 |  |  |      |      |  |      |   |      |  |  |   |      | 
|Restricted share units                                |  |      | 1,640  |  |      |   | 1,637  |      |  |   | 1,602 |  |  |      | 1,602 |  |      |   | 331   |  |  |   | 115   | 
|Restricted share units  EMT                          |  |      | 861    |  |      |   | 1,033  |      |  |   | 1,033 |  |  |      | 1,033 |  |      |   | 404   |  |  |   |      | 
|Other                                                 |  |      | 114    |  |      |   | 19     |      |  |   | 5     |  |  |      |      |  |      |   |      |  |  |   |      | 
|                                                      |  |      |        |  |      |   |        |      |  |   |       |  |  |      |       |  |      |  
|                                                      |  | $    | 34,283 |  |      | $ | 14,209 |      |  | $ | 6,444 |  |  | $    | 4,771 |  |      | $ | 2,871 |  |  | $ | 2,177 | 
|                                                      |  |      |        |  |      |   |        |      |  |   |       |  |  |      |       |  |      |  



|    |                   
|--- | ------------------
|11. | Earnings Per Share



|                                                                               |                                                                              |                      |        |       |                    |   |        |       |  |   |        |       |  |   |        |       | 
|------------------------------------------------------------------------------ | ---------------------------------------------------------------------------- | -------------------- | ------ | ----- | ------------------ | - | ------ | ----- |  | - | ------ | ----- |  | - | ------ | ----- | 
|                                                                               |                                                                              | For the three months |        |       | For the six months |  
|                                                                               |                                                                              | ended June 30,       |        |       | ended June 30,     |  
|                                                                               |                                                                              |                      |        |       |                    |  
|                                                                               |                                                                              | 2005                 |        |       | 2004               |   |        | 2005  |  |   | 2004   |      
|                                                                               |                                                                              |                      |        |       |                    |   |        |       |  |   |        |      
|Net earnings (numerator)                                                       |                                                                              | $                    | 4,269  |       |                    | $ | 11,591 |       |  | $ | 20,749 |       |  | $ | 21,214 |      
|Effect of dilutive securities:                                                 |                                                                              |                      |        |       |                    |   |        |       |  |   |        |       |  |   |        |      
|                                                                               | Interest on 8.5% subordinated convertible debentures (net of
    income tax) |                      |        |      |                    |   |        | 475   |  |   |        | 950   |  |   |        | 950   | 
|Payment in lieu of dividends on restricted share units (net of
    income tax) |                                                                              |                      | 28     |       |                    |   | 65     |       |  |   | 56     |       |  |   | 65     |      
|                                                                               |                                                                              |                      |        |       |                    |   |        |       |  |   |        |      
|Net earnings plus assumed conversions (numerator)                              |                                                                              | $                    | 4,297  |       |                    | $ | 12,131 |       |  | $ | 21,755 |       |  | $ | 22,229 |      
|                                                                               |                                                                              |                      |        |       |                    |   |        |       |  |   |        |      
|Weighted average shares outstanding  Basic (denominator)                      |                                                                              |                      | 30,441 |       |                    |   | 30,189 |       |  |   | 30,405 |       |  |   | 30,102 |      
|Effect of dilutive securities:                                                 |                                                                              |                      |        |       |                    |   |        |       |  |   |        |       |  |   |        |      
|                                                                               | 8.5% subordinated convertible debentures                                     |                      |        |      |                    |   |        | 2,731 |  |   |        | 2,518 |  |   |        | 2,705 | 
|                                                                               | Stock options                                                                |                      |        | 1,393 |                    |   |        | 1,153 |  |   |        | 1,393 |  |   |        | 1,142 | 
|                                                                               | Restricted share units                                                       |                      |        | 893   |                    |   |        | 649   |  |   |        | 904   |  |   |        | 615   | 
|                                                                               | Talbot earnout shares                                                        |                      |        | 1,917 |                    |   |        |      |  |   |        | 1,705 |  |   |        |      | 
|                                                                               | Retractable shares                                                           |                      |        | 69    |                    |   |        | 133   |  |   |        | 69    |  |   |        | 133   | 
|                                                                               | Issuable shares                                                              |                      |        |      |                    |   |        | 50    |  |   |        |      |  |   |        | 14    | 
|                                                                               |                                                                              |                      |        |       |                    |   |        |       |  |   |        |      
|Weighted average shares outstanding  Diluted (denominator)                    |                                                                              |                      | 34,713 |       |                    |   | 34,905 |       |  |   | 36,994 |       |  |   | 34,711 |      
|                                                                               |                                                                              |                      |        |       |                    |   |        |       |  |   |        |      
|Earnings per common share:                                                     |                                                                              |                      |        |       |                    |   |        |       |  |   |        |       |  |   |        |      
|                                                                               | Basic                                                                        |                      | $      | 0.14  |                    |   | $      | 0.38  |  |   | $      | 0.68  |  |   | $      | 0.70  | 
|                                                                               | Diluted                                                                      |                      | $      | 0.12  |                    |   | $      | 0.35  |  |   | $      | 0.59  |  |   | $      | 0.64  | 



|    |             
|--- | ------------
|12. | Income Taxes







|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 15



---



##### Table of Contents







|    |                               
|--- | ------------------------------
|13. | Interest and Income Taxes Paid



|                  |  |                      |        |  |                    |   |       |      |  |   |        |  |  |   |        | 
|----------------- |  | -------------------- | ------ |  | ------------------ | - | ----- | ---- |  | - | ------ |  |  | - | ------ | 
|                  |  | For the three months |        |  | For the six months |  
|                  |  | ended June 30,       |        |  | ended June 30,     |  
|                  |  |                      |        |  |                    |  
|                  |  | 2005                 |        |  | 2004               |   |       | 2005 |  |   | 2004   | 
|                  |  |                      |        |  |                    |   |       |      |  |   |        | 
|Interest paid     |  | $                    | 3,565  |  |                    | $ | 2,844 |      |  | $ | 4,385  |  |  | $ | 3,005  | 
|Income taxes paid |  | $                    | 12,858 |  |                    | $ | 6,464 |      |  | $ | 18,434 |  |  | $ | 11,845 | 



|    |                      
|--- | ---------------------
|14. | Segmented Information







|                            |                               
|--------------------------- | ------------------------------
|16HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents





|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|--------------------------------------- |  | ----------------------------------- | ------ | - | ---- | - | ------ | ------------ |  | - | ------- | - |  | ---- | ------ | - | ------------ | - | ------ | - |  | - | ------ | -
|                                        |  | For the three months ended June 30, |       
|                                        |  |                                     |       
|                                        |  | 2005                                |        |   | 2004 |  
|                                        |  |                                     |        |   |      |  
|                                        |  | Canada                              |        |   | U.S. |   |        | Consolidated |  |   | Canada  |   |  | U.S. |        |   | Consolidated |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Revenue                                 |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                   | 34,040 |   |      | $ | 78,631 |              |  | $ | 112,671 |   |  | $    | 31,455 |   |              | $ | 50,734 |   |  | $ | 82,189 |  
|Corporate                               |  |                                     | 4,805  |   |      |   | 3,815  |              |  |   | 8,620   |   |  |      | 2,995  |   |              |   | 803    |   |  |   | 3,798  |  
|Elimination of intra-segment revenue    |  |                                     | (4,756 | ) |      |   | (3,869 | )            |  |   | (8,625  | ) |  |      | (2,941 | ) |              |   | (815   | ) |  |   | (3,756 | )
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                   | 34,089 |   |      | $ | 78,577 |              |  | $ | 112,666 |   |  | $    | 31,509 |   |              | $ | 50,722 |   |  | $ | 82,231 |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Net earnings (loss) before income taxes |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                   | 7,040  |   |      | $ | 15,802 |              |  | $ | 22,842  |   |  | $    | 8,004  |   |              | $ | 12,535 |   |  | $ | 20,539 |  
|Corporate                               |  |                                     | (9,742 | ) |      |   | 146    |              |  |   | (9,596  | ) |  |      | (1,480 | ) |              |   | (500   | ) |  |   | (1,980 | )
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                   | (2,702 | ) |      | $ | 15,948 |              |  | $ | 13,246  |   |  | $    | 6,524  |   |              | $ | 12,035 |   |  | $ | 18,559 |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Income tax expense (benefit)  current  |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                   | 3,128  |   |      | $ | 6,426  |              |  | $ | 9,554   |   |  | $    | 2,848  |   |              | $ | 3,298  |   |  | $ | 6,146  |  
|Corporate                               |  |                                     | 318    |   |      |   | (970   | )            |  |   | (652    | ) |  |      | (186   | ) |              |   | (968   | ) |  |   | (1,154 | )
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                   | 3,446  |   |      | $ | 5,456  |              |  | $ | 8,902   |   |  | $    | 2,662  |   |              | $ | 2,330  |   |  | $ | 4,992  |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Income tax expense (benefit)  future   |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                   | 24     |   |      | $ | 230    |              |  | $ | 254     |   |  | $    | (358   | ) |              | $ | 2,174  |   |  | $ | 1,816  |  
|Corporate                               |  |                                     | (298   | ) |      |   | 119    |              |  |   | (179    | ) |  |      | 8      |   |              |   | 152    |   |  |   | 160    |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                   | (274   | ) |      | $ | 349    |              |  | $ | 75      |   |  | $    | (350   | ) |              | $ | 2,326  |   |  | $ | 1,976  |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Net earnings (loss)                     |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |        |  
|Brokerage                               |  | $                                   | 3,888  |   |      | $ | 9,146  |              |  | $ | 13,034  |   |  | $    | 5,514  |   |              | $ | 7,063  |   |  | $ | 12,577 |  
|Corporate                               |  |                                     | (9,762 | ) |      |   | 997    |              |  |   | (8,765  | ) |  |      | (1,302 | ) |              |   | 316    |   |  |   | (986   | )
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                   | (5,874 | ) |      | $ | 10,143 |              |  | $ | 4,269   |   |  | $    | 4,212  |   |              | $ | 7,379  |   |  | $ | 11,591 |  
|                                        |  |                                     |        |   |      |   |        |              |  |   |         |   |  |      |        |   |              |  
|Amortization of intangible assets       |  | $                                   | 31     |   |      | $ | 1,857  |              |  | $ | 1,888   |   |  | $    | 28     |   |              | $ | 908    |   |  | $ | 936    |  
|Additions to property and
    equipment |  | $                                   | 612    |   |      | $ | 1,720  |              |  | $ | 2,332   |   |  | $    | 434    |   |              | $ | 1,123  |   |  | $ | 1,557  |  
|Depreciation                            |  | $                                   | 701    |   |      | $ | 1,433  |              |  | $ | 2,134   |   |  | $    | 628    |   |              | $ | 1,102  |   |  | $ | 1,730  |  
|Interest income                         |  | $                                   | 305    |   |      | $ | 514    |              |  | $ | 819     |   |  | $    | 185    |   |              | $ | 211    |   |  | $ | 396    |  
|Interest expense                        |  | $                                   | 2,351  |   |      | $ | 237    |              |  | $ | 2,588   |   |  | $    | 1,440  |   |              | $ | 262    |   |  | $ | 1,702  |  





|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 17



---



##### Table of Contents



|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |         |  
|--------------------------------------- |  | --------------------------------- | ------- | - | ---- | - | ------- | ------------ |  | - | ------- | - |  | ---- | ------ | - | ------------ | - | ------ | - |  | - | ------- | -
|                                        |  | For the six months ended June 30, |        
|                                        |  |                                   |        
|                                        |  | 2005                              |         |   | 2004 |  
|                                        |  |                                   |         |   |      |  
|                                        |  | Canada                            |         |   | U.S. |   |         | Consolidated |  |   | Canada  |   |  | U.S. |        |   | Consolidated |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|Revenue                                 |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |         |  
|Brokerage                               |  | $                                 | 68,545  |   |      | $ | 165,697 |              |  | $ | 234,242 |   |  | $    | 61,924 |   |              | $ | 99,510 |   |  | $ | 161,434 |  
|Corporate                               |  |                                   | 11,292  |   |      |   | 7,704   |              |  |   | 18,996  |   |  |      | 6,420  |   |              |   | 1,370  |   |  |   | 7,790   |  
|Elimination of intra-segment revenue    |  |                                   | (11,175 | ) |      |   | (7,700  | )            |  |   | (18,875 | ) |  |      | (6,289 | ) |              |   | (1,355 | ) |  |   | (7,644  | )
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                 | 68,662  |   |      | $ | 165,701 |              |  | $ | 234,363 |   |  | $    | 62,055 |   |              | $ | 99,525 |   |  | $ | 161,580 |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|Net earnings (loss) before income taxes |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |         |  
|Brokerage                               |  | $                                 | 15,464  |   |      | $ | 39,792  |              |  | $ | 55,256  |   |  | $    | 14,380 |   |              | $ | 23,529 |   |  | $ | 37,909  |  
|Corporate                               |  |                                   | (15,384 | ) |      |   | 2,736   |              |  |   | (12,648 | ) |  |      | (2,224 | ) |              |   | (2,234 | ) |  |   | (4,458  | )
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                 | 80      |   |      | $ | 42,528  |              |  | $ | 42,608  |   |  | $    | 12,156 |   |              | $ | 21,295 |   |  | $ | 33,451  |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|Income tax expense (benefit)  current  |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |         |  
|Brokerage                               |  | $                                 | 5,782   |   |      | $ | 16,795  |              |  | $ | 22,577  |   |  | $    | 5,125  |   |              | $ | 9,123  |   |  | $ | 14,248  |  
|Corporate                               |  |                                   | 1,320   |   |      |   | (1,141  | )            |  |   | 179     |   |  |      | (113   | ) |              |   | (2,405 | ) |  |   | (2,518  | )
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                 | 7,102   |   |      | $ | 15,654  |              |  | $ | 22,756  |   |  | $    | 5,012  |   |              | $ | 6,718  |   |  | $ | 11,730  |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|Income tax expense (benefit)  future   |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |         |  
|Brokerage                               |  | $                                 | (89     | ) |      | $ | (729    | )            |  | $ | (818    | ) |  | $    | (404   | ) |              | $ | 811    |   |  | $ | 407     |  
|Corporate                               |  |                                   | (481    | ) |      |   | 402     |              |  |   | (79     | ) |  |      | (191   | ) |              |   | 291    |   |  |   | 100     |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                 | (570    | ) |      | $ | (327    | )            |  | $ | (897    | ) |  | $    | (595   | ) |              | $ | 1,102  |   |  | $ | 507     |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|Net earnings (loss)                     |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |   |        |   |  |   |         |  
|Brokerage                               |  | $                                 | 9,771   |   |      | $ | 23,726  |              |  | $ | 33,497  |   |  | $    | 9,659  |   |              | $ | 13,595 |   |  | $ | 23,254  |  
|Corporate                               |  |                                   | (16,223 | ) |      |   | 3,475   |              |  |   | (12,748 | ) |  |      | (1,920 | ) |              |   | (120   | ) |  |   | (2,040  | )
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|                                        |  | $                                 | (6,452  | ) |      | $ | 27,201  |              |  | $ | 20,749  |   |  | $    | 7,739  |   |              | $ | 13,475 |   |  | $ | 21,214  |  
|                                        |  |                                   |         |   |      |   |         |              |  |   |         |   |  |      |        |   |              |  
|Amortization of intangible assets       |  | $                                 | 63      |   |      | $ | 3,684   |              |  | $ | 3,747   |   |  | $    | 55     |   |              | $ | 1,662  |   |  | $ | 1,717   |  
|Additions to property and equipment     |  | $                                 | 1,102   |   |      | $ | 2,166   |              |  | $ | 3,268   |   |  | $    | 947    |   |              | $ | 2,006  |   |  | $ | 2,953   |  
|Depreciation                            |  | $                                 | 1,391   |   |      | $ | 2,824   |              |  | $ | 4,215   |   |  | $    | 1,270  |   |              | $ | 2,047  |   |  | $ | 3,317   |  
|Interest income                         |  | $                                 | 611     |   |      | $ | 994     |              |  | $ | 1,605   |   |  | $    | 463    |   |              | $ | 395    |   |  | $ | 858     |  
|Interest expense                        |  | $                                 | 4,533   |   |      | $ | 458     |              |  | $ | 4,991   |   |  | $    | 2,834  |   |              | $ | 528    |   |  | $ | 3,362   |  

|                    |  |                                           |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |   |         |  |  |   |         | 
|------------------- |  | ----------------------------------------- | ------- |  | ---- | - | ------- | ------------ |  | - | ------- |  |  | ---- | ------- |  | ------------ | - | ------- |  |  | - | ------- | 
|                    |  | As of June 30, 2005 and December 31, 2004 |        
|                    |  |                                           |        
|                    |  | 2005                                      |         |  | 2004 |  
|                    |  |                                           |         |  |      |  
|                    |  | Canada                                    |         |  | U.S. |   |         | Consolidated |  |   | Canada  |  |  | U.S. |         |  | Consolidated |  
|                    |  |                                           |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |  
|Identifiable assets |  |                                           |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |   |         |  |  |   |         | 
|Brokerage           |  | $                                         | 179,902 |  |      | $ | 690,392 |              |  | $ | 870,294 |  |  | $    | 172,445 |  |              | $ | 624,171 |  |  | $ | 796,616 | 
|Corporate           |  |                                           | 56,344  |  |      |   | 23,409  |              |  |   | 79,753  |  |  |      | 43,769  |  |              |   | 17,150  |  |  |   | 60,919  | 
|                    |  |                                           |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |  
|                    |  | $                                         | 236,246 |  |      | $ | 713,801 |              |  | $ | 950,047 |  |  | $    | 216,214 |  |              | $ | 641,321 |  |  | $ | 857,535 | 
|                    |  |                                           |         |  |      |   |         |              |  |   |         |  |  |      |         |  |              |  





|                            |                               
|--------------------------- | ------------------------------
|18HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents





|    |                           
|--- | --------------------------
|15. | Related Party Transactions



|                                          |  |                      |        |  |                    |   |       |      |  |   |        |   |  |   |        | 
|----------------------------------------- |  | -------------------- | ------ |  | ------------------ | - | ----- | ---- |  | - | ------ | - |  | - | ------ | 
|                                          |  | For the three months |        |  | For the six months |  
|                                          |  | ended June 30,       |        |  | ended June 30,     |  
|                                          |  |                      |        |  |                    |  
|                                          |  | 2005                 |        |  | 2004               |   |       | 2005 |  |   | 2004   |  
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  
|Northbridge Financial Corporation         |  | $                    | 8,356  |  |                    | $ | 6,493 |      |  | $ | 12,991 |   |  | $ | 10,951 | 
|Crum & Forster Holdings, Inc.             |  |                      | 603    |  |                    |   | 176   |      |  |   | 782    |   |  |   | 359    | 
|Odyssey Reinsurance Co.                   |  |                      | 611    |  |                    |   |      |      |  |   | 611    |   |  |   |       | 
|Fairfax Inc.                              |  |                      | 42     |  |                    |   | 1,158 |      |  |   | (211   | ) |  |   | 2,590  | 
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  
|                                          |  |                      | 9,612  |  |                    |   | 7,827 |      |  |   | 14,173 |   |  |   | 13,900 | 
|Old Lyme Insurance Company, Ltd. (OLIC) |  |                      | 1,417  |  |                    |   | 231   |      |  |   | 2,907  |   |  |   | 231    | 
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  
|                                          |  | $                    | 11,029 |  |                    | $ | 8,058 |      |  | $ | 17,080 |   |  | $ | 14,131 | 
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  









|    |                            
|--- | ---------------------------
|16. | Reconciliation to U.S. GAAP







|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 19



---



##### Table of Contents



Net earnings and comprehensive income




|                                                                         |                                                                                                          |                      |       |        |                    |   |        |        |   |   |        |        |   |   |        |        |  
|------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------- | -------------------- | ----- | ------ | ------------------ | - | ------ | ------ | - | - | ------ | ------ | - | - | ------ | ------ | -
|                                                                         |                                                                                                          | For the three months |       |        | For the six months |  
|                                                                         |                                                                                                          | ended June 30,       |       |        | ended June 30,     |  
|                                                                         |                                                                                                          |                      |       |        |                    |  
|                                                                         |                                                                                                          | 2005                 |       |        | 2004               |   |        | 2005   |   |   | 2004   |       
|                                                                         |                                                                                                          |                      |       |        |                    |   |        |        |   |   |        |       
|Net earnings for the period based on Canadian GAAP and U.S.
    GAAP (1) |                                                                                                          | $                    | 4,269 |        |                    | $ | 11,591 |        |   | $ | 20,749 |        |   | $ | 21,214 |       
|Other comprehensive income: (2)                                          |                                                                                                          |                      |       |        |                    |   |        |        |   |   |        |        |   |   |        |       
|                                                                         | Unrealized gain/(loss) net of tax of $52  Q2/05, $(17)
     Q2/04, $18  Q2/05 YTD, $(40)  Q2/04 YTD  |                      |       | (81    | )                  |   |        | 27     |   |   |        | (28    | ) |   |        | 62     |  
|                                                                         | Reclassification adjustment, net of tax $39  Q2/05,
    $0  Q2/04, $39  Q2/05 YTD, $0  Q2/04
    YTD |                      |       | (62    | )                  |   |        |       |   |   |        | (62    | ) |   |        |       |  
|                                                                         | Foreign currency translation adjustment                                                                  |                      |       | (1,394 | )                  |   |        | (2,350 | ) |   |        | (1,865 | ) |   |        | (3,642 | )
|                                                                         |                                                                                                          |                      |       |        |                    |   |        |        |   |   |        |       
|Comprehensive income based on U.S. GAAP (2)                              |                                                                                                          | $                    | 2,732 |        |                    | $ | 9,268  |        |   | $ | 18,794 |        |   | $ | 17,634 |       
|                                                                         |                                                                                                          |                      |       |        |                    |   |        |        |   |   |        |       

Shareholders equity




|                                            |                                                         |          |         |    |              |   |         |     | 
|------------------------------------------- | ------------------------------------------------------- | -------- | ------- | -- | ------------ | - | ------- | --- | 
|                                            |                                                         | June 30, |         |    | December 31, |  
|                                            |                                                         | 2005     |         |    | 2004         |  
|                                            |                                                         |          |         |    |              |  
|Shareholders equity based on Canadian GAAP |                                                         | $        | 403,613 |    |              | $ | 381,783 |    
|Adjustment to investment held for sale (3)  |                                                         |          | (1,716  | )  |              |   | (1,716  | )  
|Accumulated other comprehensive income:     |                                                         |          |         |    |              |   |         |    
|                                            | Unrealized gain net of tax of $(43) 2005, $(99)  2004 |          |         | 67 |              |   |         | 157 | 
|                                            |                                                         |          |         |    |              |  
|Shareholders equity based on U.S. GAAP (3) |                                                         | $        | 401,964 |    |              | $ | 380,224 |    
|                                            |                                                         |          |         |    |              |  








|    |                                                                                                                                                                                                                                                                                                                   
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The condensed consolidated statements of earnings and cash flows
    for the three months and six months ended June 30, 2005 and
    2004, were the same under Canadian and U.S. GAAP. The condensed
    consolidated balance sheets as at June 30, 2005 and
    December 31, 2004 under U.S. GAAP are as follows:

|                                       |  |          |         |  |              |   |         | 
|-------------------------------------- |  | -------- | ------- |  | ------------ | - | ------- | 
|                                       |  | June 30, |         |  | December 31, |  
|                                       |  | 2005     |         |  | 2004         |  
|                                       |  |          |         |  |              |  
|Condensed consolidated balance sheets: |  |          |         |  |              |   |         | 
|Total current assets                   |  | $        | 434,250 |  |              | $ | 348,707 | 
|Total assets (4)                       |  | $        | 946,409 |  |              | $ | 853,753 | 
|Total current liabilities              |  | $        | 353,826 |  |              | $ | 279,345 | 
|Total liabilities (4)                  |  | $        | 544,445 |  |              | $ | 473,529 | 
|Total shareholders equity             |  | $        | 401,964 |  |              | $ | 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





|                            |                               
|--------------------------- | ------------------------------
|20HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | 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, investments
    held for sale are recorded at cost. No further adjustments are
    made to the carrying value of the investment until it is sold.
    Under U.S. GAAP investments held for sale are recorded at cost
    and adjusted to fair value until sold. The adjustment of $1,716
    reflects the difference in accounting for investments held for
    sale and subsequently sold by the Company under Canadian GAAP
    vs. U.S. GAAP.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|   
|(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
    $2.2 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.



|    |                  
|--- | -----------------
|17. | Subsequent Events







|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 21



---



##### 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 16 to our unaudited consolidated
financial statements.


Overview








same-store-sales








|                            |                               
|--------------------------- | ------------------------------
|22HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents







Results of Operations


Three months ended June 30, 2005 compared with three
months ended June 30, 2004


Revenue








|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 23



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##### Table of Contents





|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|------------------------------------------- |  | ------- | ------- |  | --------- | - | ------ | ---------- |  | - | -------------- | - |  | ------------- | --- |  | --------- | - | ------- | --------- |  | - | ----- | - |  |  | --- | 
|                                            |  |         |         |  |           |   |        | Adjustment |  |   |                |   | 
|                                            |  | Revenue |         |  |           |   |        | for        |  |   |                |   | 
|                                            |  |         |         |  | Total Net |   |        | Total Net  |  |   | (Acquisitions) |   |  | Organic       |     |  | Organic   |  
|(in thousands of U.S. dollars,              |  | 2005    |         |  | 2004      |   |        | Change($)  |  |   | Growth(%)      |   |  | and Disposals |     |  | Growth($) |   |         | Growth(%) | 
|except percentages)                         |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           | 
|Total                                       |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Commission Income                           |  | $       | 105,418 |  |           | $ | 76,922 |            |  | $ | 28,496         |   |  |               | 37% |  |           | $ | (23,644 | )         |  | $ | 4,852 |   |  |  | 6%  | 
|Contingent Commissions and Volume Overrides |  |         | 4,244   |  |           |   | 3,038  |            |  |   | 1,206          |   |  |               | 40% |  |           |   | (829    | )         |  |   | 377   |   |  |  | 13% | 
|Other Income                                |  |         | 3,004   |  |           |   | 2,271  |            |  |   | 733            |   |  |               | 32% |  |           |   | (208    | )         |  |   | 525   |   |  |  | 23% | 
|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Total                                       |  | $       | 112,666 |  |           | $ | 82,231 |            |  | $ | 30,435         |   |  |               | 37% |  |           | $ | (24,681 | )         |  | $ | 5,754 |   |  |  | 7%  | 
|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|U.S.                                        |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Commission Income                           |  | $       | 72,740  |  |           | $ | 46,805 |            |  | $ | 25,935         |   |  |               | 55% |  |           | $ | (25,037 | )         |  | $ | 898   |   |  |  | 2%  | 
|Contingent Commissions and Volume Overrides |  |         | 3,461   |  |           |   | 2,189  |            |  |   | 1,272          |   |  |               | 58% |  |           |   | (864    | )         |  |   | 408   |   |  |  | 19% | 
|Other Income                                |  |         | 2,376   |  |           |   | 1,728  |            |  |   | 648            |   |  |               | 37% |  |           |   | (242    | )         |  |   | 406   |   |  |  | 23% | 
|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Total                                       |  | $       | 78,577  |  |           | $ | 50,722 |            |  | $ | 27,855         |   |  |               | 55% |  |           | $ | (26,143 | )         |  | $ | 1,712 |   |  |  | 3%  | 
|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Canada                                      |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Commission Income                           |  | $       | 32,678  |  |           | $ | 30,117 |            |  | $ | 2,561          |   |  |               | 9%  |  |           | $ | 1,393   |           |  | $ | 3,954 |   |  |  | 13% | 
|Contingent Commissions and Volume Overrides |  |         | 783     |  |           |   | 849    |            |  |   | (66            | ) |  |               | -8% |  |           |   | 35      |           |  |   | (31   | ) |  |  | -3% | 
|Other Income                                |  |         | 628     |  |           |   | 543    |            |  |   | 85             |   |  |               | 16% |  |           |   | 34      |           |  |   | 119   |   |  |  | 22% | 
|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 
|Total                                       |  | $       | 34,089  |  |           | $ | 31,509 |            |  | $ | 2,580          |   |  |               | 8%  |  |           | $ | 1,462   |           |  | $ | 4,042 |   |  |  | 13% | 
|                                            |  |         |         |  |           |   |        |            |  |   |                |   |  |               |     |  |           |   |         |           |  |   |       |   |  |  |     | 







| |   |                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.







|                            |                               
|--------------------------- | ------------------------------
|24HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



---



##### Table of Contents





|                                                           |                                                      |              |       |       |             |   |      |              |   |   |             |      |   |   |      |       |  
|---------------------------------------------------------- | ---------------------------------------------------- | ------------ | ----- | ----- | ----------- | - | ---- | ------------ | - | - | ----------- | ---- | - | - | ---- | ----- | -
|                                                           |                                                      | 2005         |       |       | 2004        |  
|                                                           |                                                      |              |       |       |             |  
|(in thousands of U.S. dollars,                             |                                                      | Net Earnings |       |       | Diluted EPS |   |      | Net Earnings |   |   | Diluted EPS |     
|except per share amounts)                                  |                                                      |              |       |       |             |   |      |              |   |   |             |     
|Reported results (GAAP) for the three months ended June 30 |                                                      | $            | 4,269 |       |             | $ | 0.12 |              |   | $ | 11,591      |      |   | $ | 0.35 |      
|                                                           | Impact of foreign exchange                           |              | $     | (420  | )           |   | $    | (0.01        | ) |   | $           | (219 | ) |   | $    | (0.01 | )
|                                                           | Impact of non-cash stock based compensation  Talbot |              | $     | 8,721 |             |   | $    | 0.25         |   |   | $           |     |   |   | $    |      |  





U.S.
Results




Canadian
Results




Compensation Expense








|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 25



---



##### Table of Contents





Compensation Comparison


For the three months ended June 30, 2005 and 2004


|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |     |  |  |  |     | 
|--------------------------------- |  | ---- | ------ |  | ---- | - | ------ | -------- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                  |  |      |        |  |      |   |        | % of    
|                                  |  |      |        |  |      |   |        | Revenue 
|                                  |  |      |        |  |      |   |        |          | 
|(in thousands of U.S. dollars,    |  | 2005 |        |  | 2004 |   |        | % Change |  |  | 2005 |  |  | 2004 |    
|except percentages)               |  |      |        |  |      |   |        |          |  |  |      |  |  |      |    
|Cash compensation                 |  | $    | 61,447 |  |      | $ | 42,114 |          |  |  | 46%  |  |  |      | 55% |  |  |  | 51% | 
|Non-cash stock based compensation |  |      | 10,652 |  |      |   | 1,701  |          |  |  | 526% |  |  |      | 9%  |  |  |  | 2%  | 
|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |     |  |  |  |     | 
|Total                             |  | $    | 72,099 |  |      | $ | 43,815 |          |  |  | 65%  |  |  |      | 64% |  |  |  | 53% | 
|                                  |  |      |        |  |      |   |        |          |  |  |      |  |  |      |     |  |  |  |     | 





|                                   |                                                                 |      |        |       |      |   |       |     | 
|---------------------------------- | --------------------------------------------------------------- | ---- | ------ | ----- | ---- | - | ----- | --- | 
|                                   |                                                                 | 2005 |        |       | 2004 |  
|(in thousands of U.S. dollars)     |                                                                 |      |        |       |      |  
|Non-cash stock based compensation: |                                                                 |      |        |       |      |   |       |    
|                                   | Stock options granted June 2002                                 |      | $      | 389   |      |   | $     | 510 | 
|                                   | Stock options granted February 2003                             |      |        | 90    |      |   |       | 128 | 
|                                   | Stock based compensation granted for 2003 bonuses               |      |        | 780   |      |   |       | 634 | 
|                                   | Restricted share units                                          |      |        | 403   |      |   |       | 429 | 
|                                   | Restricted share units  EMT                                    |      |        | 258   |      |   |       |    | 
|                                   | Other                                                           |      |        | 11    |      |   |       |    | 
|                                   |                                                                 |      |        |       |      |  
|                                   |                                                                 |      | 1,931  |       |      |   | 1,701 |    
|                                   | Non-cash stock based compensation related to Talbot acquisition |      |        | 8,721 |      |   |       |    | 
|                                   |                                                                 |      |        |       |      |  
|                                   |                                                                 | $    | 10,652 |       |      | $ | 1,701 |    
|                                   |                                                                 |      |        |       |      |  

Selling, Occupancy and Administration Expense




Depreciation




Interest Expense








|                            |                               
|--------------------------- | ------------------------------
|26HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents



Intangible Asset Amortization




Provision for Income Tax Expense




Net Earnings and Earnings Per Share






Results of Operations


Six months ended June 30, 2005 compared with six months
ended June 30, 2004


Revenue








|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 27



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##### Table of Contents





|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           |  |   |        |  |  |  |     | 
|------------------------------------------- |  | ---------------- | ------- |  | --------- | - | ------- | --------- | ---------- | - | -------------- |  |  | ------------- | --- | - | --------- | - | ------- | --------- |  | - | ------ |  |  |  | --- | 
|                                            |  | Revenue          |         |  |           |   |         |           |            |   |                |  | 
|                                            |  |                  |         |  |           |   |         |           | Adjustment |   |                |  |  |              
|                                            |  |                  |         |  |           |   |         | for       |            |   |                |  | 
|                                            |  | First Six Months |         |  | Total Net |   |         | Total Net |            |   | (Acquisitions) |  |  | Organic       |     |   | Organic   |  
|(in thousands of U.S. dollars,              |  | 2005             |         |  | 2004      |   |         | Change($) |            |   | Growth(%)      |  |  | and Disposals |     |   | Growth($) |   |         | Growth(%) | 
|except percentages)                         |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 
|Total                                       |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           |  |   |        |  |  |  |     | 
|Commission Income                           |  | $                | 194,387 |  |           | $ | 138,507 |           |            | $ | 55,880         |  |  |               | 40  | % |           | $ | (48,903 | )         |  | $ | 6,977  |  |  |  | 5%  | 
|Contingent Commissions and Volume Overrides |  |                  | 33,404  |  |           |   | 18,075  |           |            |   | 15,329         |  |  |               | 85  | % |           |   | (9,537  | )         |  |   | 5,792  |  |  |  | 32% | 
|Other Income                                |  |                  | 6,572   |  |           |   | 4,998   |           |            |   | 1,574          |  |  |               | 31  | % |           |   | (880    | )         |  |   | 694    |  |  |  | 14% | 
|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 
|Total                                       |  | $                | 234,363 |  |           | $ | 161,580 |           |            | $ | 72,783         |  |  |               | 45  | % |           | $ | (59,320 | )         |  | $ | 13,463 |  |  |  | 8%  | 
|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 
|U.S.                                        |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           |  |   |        |  |  |  |     | 
|Commission Income                           |  | $                | 135,893 |  |           | $ | 83,853  |           |            | $ | 52,040         |  |  |               | 62  | % |           | $ | (51,424 | )         |  | $ | 616    |  |  |  | 1%  | 
|Contingent Commissions and Volume Overrides |  |                  | 24,418  |  |           |   | 11,832  |           |            |   | 12,586         |  |  |               | 106 | % |           |   | (9,859  | )         |  |   | 2,727  |  |  |  | 23% | 
|Other Income                                |  |                  | 5,390   |  |           |   | 3,840   |           |            |   | 1,550          |  |  |               | 40  | % |           |   | (951    | )         |  |   | 599    |  |  |  | 16% | 
|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 
|Total                                       |  | $                | 165,701 |  |           | $ | 99,525  |           |            | $ | 66,176         |  |  |               | 66  | % |           | $ | (62,234 | )         |  | $ | 3,942  |  |  |  | 4%  | 
|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 
|Canada                                      |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           |  |   |        |  |  |  |     | 
|Commission Income                           |  | $                | 58,494  |  |           | $ | 54,654  |           |            | $ | 3,840          |  |  |               | 7   | % |           | $ | 2,521   |           |  | $ | 6,361  |  |  |  | 12% | 
|Contingent Commissions and Volume Overrides |  |                  | 8,986   |  |           |   | 6,243   |           |            |   | 2,743          |  |  |               | 44  | % |           |   | 322     |           |  |   | 3,065  |  |  |  | 49% | 
|Other Income                                |  |                  | 1,182   |  |           |   | 1,158   |           |            |   | 24             |  |  |               | 2   | % |           |   | 71      |           |  |   | 95     |  |  |  | 8%  | 
|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 
|Total                                       |  | $                | 68,662  |  |           | $ | 62,055  |           |            | $ | 6,607          |  |  |               | 11  | % |           | $ | 2,914   |           |  | $ | 9,521  |  |  |  | 15% | 
|                                            |  |                  |         |  |           |   |         |           |            |   |                |  |  |               |     |   |           |   |         |           | 







| |   |                                                                                                                                                                                                                                    
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.







|                            |                               
|--------------------------- | ------------------------------
|28HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents





|                                                         |                                                               |              |        |        |             |   |      |              |   |   |             |        |   |   |      |       |  
|-------------------------------------------------------- | ------------------------------------------------------------- | ------------ | ------ | ------ | ----------- | - | ---- | ------------ | - | - | ----------- | ------ | - | - | ---- | ----- | -
|                                                         |                                                               | 2005         |        |        | 2004        |  
|                                                         |                                                               |              |        |        |             |  
|(in thousands of U.S. dollars,                           |                                                               | Net Earnings |        |        | Diluted EPS |   |      | Net Earnings |   |   | Diluted EPS |       
|except per share amounts)                                |                                                               |              |        |        |             |   |      |              |   |   |             |       
|Reported results (GAAP) for the six months ended June 30 |                                                               | $            | 20,749 |        |             | $ | 0.59 |              |   | $ | 21,214      |        |   | $ | 0.64 |      
|                                                         | Impact of foreign exchange                                    |              | $      | (1,089 | )           |   | $    | (0.03        | ) |   | $           | (1,084 | ) |   | $    | (0.03 | )
|                                                         | Impact of non-cash stock based compensation  Talbot          |              | $      | 15,915 |             |   | $    | 0.43         |   |   | $           |       |   |   | $    |      |  
|                                                         | Impact of gain on forgiveness of debt                         |              | $      | (2,925 | )           |   | $    | (0.08        | ) |   | $           |       |   |   | $    |      |  
|                                                         | Impact of gain on disposition of assets of certain brokerages |              | $      | (1,914 | )           |   | $    | (0.05        | ) |   | $           | (414   | ) |   | $    | (0.01 | )
|                                                         | Impact of write-off of trademarks                             |              | $      |       |             |   | $    |             |   |   | $           | 1,656  |   |   | $    | 0.05  |  





U.S.
Results




Canadian
Results








|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 29



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##### Table of Contents



Compensation Expense




Compensation Comparison


For the six months ended June 30,


|                                  |  |      |         |  |      |   |        |          |  |  |      |  |  |      |     |  |  |  |     | 
|--------------------------------- |  | ---- | ------- |  | ---- | - | ------ | -------- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                  |  |      |         |  |      |   |        | % of     | 
|                                  |  |      |         |  |      |   |        | Revenue  | 
|                                  |  |      |         |  |      |   |        |          | 
|(in thousands of U.S. dollars,    |  | 2005 |         |  | 2004 |   |        | % Change |  |  | 2005 |  |  | 2004 |    
|except percentages)               |  |      |         |  |      |   |        |          |  |  |      |  |  |      |    
|Cash compensation                 |  | $    | 125,300 |  |      | $ | 82,751 |          |  |  | 51%  |  |  |      | 54% |  |  |  | 51% | 
|Non-cash stock based compensation |  |      | 19,650  |  |      |   | 3,315  |          |  |  | 493% |  |  |      | 8%  |  |  |  | 2%  | 
|                                  |  |      |         |  |      |   |        |          |  |  |      |  |  |      |    
|Total                             |  | $    | 144,950 |  |      | $ | 86,066 |          |  |  | 68%  |  |  |      | 62% |  |  |  | 53% | 
|                                  |  |      |         |  |      |   |        |          |  |  |      |  |  |      |    





|                                   |                                                                 |      |        |        |      |   |       |       | 
|---------------------------------- | --------------------------------------------------------------- | ---- | ------ | ------ | ---- | - | ----- | ----- | 
|                                   |                                                                 | 2005 |        |        | 2004 |  
|(in thousands of U.S. dollars)     |                                                                 |      |        |        |      |  
|Non-cash stock based compensation: |                                                                 |      |        |        |      |   |       |      
|                                   | Stock options granted June 2002                                 |      | $      | 851    |      |   | $     | 1,001 | 
|                                   | Stock options granted February 2003                             |      |        | 190    |      |   |       | 230   | 
|                                   | Stock based compensation granted for 2003 bonuses               |      |        | 1,514  |      |   |       | 1,267 | 
|                                   | Restricted share units                                          |      |        | 818    |      |   |       | 817   | 
|                                   | Restricted share units  EMT                                    |      |        | 344    |      |   |       |      | 
|                                   | Other                                                           |      |        | 18     |      |   |       |      | 
|                                   |                                                                 |      |        |        |      |  
|                                   |                                                                 |      | 3,735  |        |      |   | 3,315 |      
|                                   | Non-cash stock based compensation related to Talbot acquisition |      |        | 15,915 |      |   |       |      | 
|                                   |                                                                 |      |        |        |      |  
|                                   |                                                                 | $    | 19,650 |        |      | $ | 3,315 |      
|                                   |                                                                 |      |        |        |      |  

Selling, Occupancy and Administration Expense




Depreciation








|                            |                               
|--------------------------- | ------------------------------
|30HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents



Interest Expense




Gain on Forgiveness of Debt




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




Intangible Asset Amortization




Loss on Write-Off of Trademarks




Provision for Income Tax Expense




Net Earnings and Earnings Per Share






Cash Flow, Liquidity and Capital Resources








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



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##### Table of Contents











|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 3.34% and 2.40% at June 30, 2005 and
    December 31, 2004, respectively. The facility is available
    on a revolving basis for one year. In April 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 June 30, 2005 and December 31,
    2004. As of June 30, 2005, we were in compliance with all
    financial covenants governing this facility.
|   
|(2) | Demand U.S. dollar base rate loan  We have an undrawn
    $9.8 million facility which bears interest at the
    banks U.S. base rate, which was 6.50% and 5.75% at
    June 30, 2005 and December 31, 2004, respectively,
    plus 50 basis points. Borrowings under this facility are
    repayable on demand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   









|                            |                               
|--------------------------- | ------------------------------
|32HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents





















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|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 33



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##### Table of Contents



Contractual Obligations




|                                    |  |       |         |           |        |   |        |       |  |     |        |  |       |         |         |  |  |   |        | 
|----------------------------------- |  | ----- | ------- | --------- | ------ | - | ------ | ----- |  | --- | ------ |  | ----- | ------- | ------- |  |  | - | ------ | 
|                                    |  |       |         | Less than |        |   | 1-3    |       |  | 4-5 |        |  | After |        
|Payments due by period              |  | Total |         |           | 1 Year |   |        | Years |  |     | Years  |  |       | 5 Years |        
|(in thousands of U.S. dollars)      |  |       |         |           |        |   |        |       |  |     |        |  |       |         |        
|Contractual Obligations             |  |       |         |           |        |   |        |       |  |     |        |  |       |         |         |  |  |   |        | 
|Long-term debt                      |  | $     | 141,806 |           |        | $ | 4,819  |       |  | $   | 9,447  |  |       | $       | 94,540  |  |  | $ | 33,000 | 
|Capital lease obligations           |  |       | 319     |           |        |   | 255    |       |  |     | 64     |  |       |         |        |  |  |   |       | 
|Operating lease obligations         |  |       | 87,731  |           |        |   | 16,712 |       |  |     | 27,282 |  |       |         | 20,666  |  |  |   | 23,071 | 
|Executive share purchase plan loans |  |       | 516     |           |        |   |       |       |  |     | 516    |  |       |         |        |  |  |   |       | 
|                                    |  |       |         |           |        |   |        |       |  |     |        |  |       |         |        
|Total                               |  | $     | 230,372 |           |        | $ | 21,786 |       |  | $   | 37,309 |  |       | $       | 115,206 |  |  | $ | 56,071 | 
|                                    |  |       |         |           |        |   |        |       |  |     |        |  |       |         |        

Acquisitions






Other










|                            |                               
|--------------------------- | ------------------------------
|34HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents



Shareholders equity


Restricted share units.


Share repurchases.


Shares reserved for issuance.




Market Risk


Interest rate risk




Exchange rate sensitivity






|                               |  |      |     |  |      |      |     | 
|------------------------------ |  | ---- | --- |  | ---- | ---- | --- | 
|                               |  | 2005 |     |  | 2004 |     
|(in millions of U.S. dollars)  |  |      |     |  |      |     
|Revenue                        |  | +/-$ | 0.4 |  |      | +/-$ | 0.4 | 
|Net earnings                   |  | +/-$ | 0.1 |  |      | +/-$ | 0.1 | 
|Cumulative translation account |  | +/-$ | 1.9 |  |      | +/-$ | 1.6 | 







|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 35



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##### Table of Contents



Goodwill and Other Intangible Assets




|                               |       |          |         |         |              |   |         |         | 
|------------------------------ | ----- | -------- | ------- | ------- | ------------ | - | ------- | ------- | 
|                               |       | June 30, |         |         | December 31, |  
|                               |       | 2005     |         |         | 2004         |  
|(in thousands of U.S. dollars) |       |          |         |         |              |  
|Customer relationships         |       | $        | 98,411  |         |              | $ | 95,982  |        
|Non-competition covenants      |       |          | 4,106   |         |              |   | 4,110   |        
|Goodwill                       |       |          | 399,140 |         |              |   | 394,063 |        
|Accumulated amortization       |       |          | (32,060 | )       |              |   | (28,637 | )      
|                               |       |          |         |         |              |  
|                               | Total |          | $       | 469,597 |              |   | $       | 465,518 | 
|                               |       |          |         |         |              |  







|                               |       |                      |       |       |                    |   |     |      |  |   |       |       |  |   |       |       | 
|------------------------------ | ----- | -------------------- | ----- | ----- | ------------------ | - | --- | ---- |  | - | ----- | ----- |  | - | ----- | ----- | 
|                               |       | For the three months |       |       | For the six months |  
|                               |       | ended June 30,       |       |       | ended June 30,     |  
|                               |       |                      |       |       |                    |  
|                               |       | 2005                 |       |       | 2004               |   |     | 2005 |  |   | 2004  |      
|(in thousands of U.S. dollars) |       |                      |       |       |                    |   |     |      |  |   |       |      
|Customer relationships         |       | $                    | 1,839 |       |                    | $ | 893 |      |  | $ | 3,642 |       |  | $ | 1,657 |      
|Non-competition covenants      |       |                      | 49    |       |                    |   | 43  |      |  |   | 105   |       |  |   | 60    |      
|                               |       |                      |       |       |                    |   |     |      |  |   |       |      
|                               | Total |                      | $     | 1,888 |                    |   | $   | 936  |  |   | $     | 3,747 |  |   | $     | 1,717 | 
|                               |       |                      |       |       |                    |   |     |      |  |   |       |      



|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |       |       |  |   |       |       | 
|------------------------------ | ----- | ---- | ----- | ----- | ---- | - | ----- | ----- |  | - | ----- | ----- |  | ---- | ----- | ----- |  | - | ----- | ----- | 
|Year ended December 31,        |       | 2005 |       |       | 2006 |   |       | 2007  |  |   | 2008  |       |  | 2009 |      
|(in thousands of U.S. dollars) |       |      |       |       |      |   |       |       |  |   |       |       |  |      |      
|Customer relationships         |       | $    | 7,671 |       |      | $ | 7,678 |       |  | $ | 7,678 |       |  | $    | 7,678 |       |  | $ | 7,678 |      
|Non-competition covenants      |       |      | 156   |       |      |   | 102   |       |  |   | 95    |       |  |      | 2     |       |  |   | 1     |      
|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |       |       |  |   |       |      
|                               | Total |      | $     | 7,827 |      |   | $     | 7,780 |  |   | $     | 7,773 |  |      | $     | 7,680 |  |   | $     | 7,679 | 
|                               |       |      |       |       |      |   |       |       |  |   |       |       |  |      |       |       |  |   |       |      





|                            |                               
|--------------------------- | ------------------------------
|36HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents



Related Party Transactions




|                                          |  |                      |        |  |                    |   |       |      |  |   |        |   |  |   |        | 
|----------------------------------------- |  | -------------------- | ------ |  | ------------------ | - | ----- | ---- |  | - | ------ | - |  | - | ------ | 
|                                          |  | For the three months |        |  | For the six months |  
|                                          |  | ended June 30,       |        |  | ended June 30,     |  
|                                          |  |                      |        |  |                    |  
|                                          |  | 2005                 |        |  | 2004               |   |       | 2005 |  |   | 2004   |  
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  
|Northbridge Financial Corporation         |  | $                    | 8,356  |  |                    | $ | 6,493 |      |  | $ | 12,991 |   |  | $ | 10,951 | 
|Crum & Forster Holdings, Inc.             |  |                      | 603    |  |                    |   | 176   |      |  |   | 782    |   |  |   | 359    | 
|Odyssey Reinsurance Co.                   |  |                      | 611    |  |                    |   |      |      |  |   | 611    |   |  |   |       | 
|Fairfax Inc.                              |  |                      | 42     |  |                    |   | 1,158 |      |  |   | (211   | ) |  |   | 2,590  | 
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  
|                                          |  |                      | 9,612  |  |                    |   | 7,827 |      |  |   | 14,173 |   |  |   | 13,900 | 
|Old Lyme Insurance Company, Ltd. (OLIC) |  |                      | 1,417  |  |                    |   | 231   |      |  |   | 2,907  |   |  |   | 231    | 
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  
|                                          |  | $                    | 11,029 |  |                    | $ | 8,058 |      |  | $ | 17,080 |   |  | $ | 14,131 | 
|                                          |  |                      |        |  |                    |   |       |      |  |   |        |  







Off-Balance Sheet Transactions








|                               |                             
|------------------------------ | ----------------------------
|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 37



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##### 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














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|38HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005



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##### Table of Contents














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






Item 4. Submission of Matters to a Vote of Security
Holders




Election of Directors.






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|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 39



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|                     |  |           |            |  |               |  |     |                |  |  |       | 
|-------------------- |  | --------- | ---------- |  | ------------- |  | --- | -------------- |  |  | ----- | 
|                     |  | Votes For |            |  | Votes Against |  |     | Votes Withheld | 
|Name                 |  |           |            |  |               |  |     |                | 
|Martin P. Hughes     |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Richard A. Gulliver  |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Bruce D. Guthart     |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Anthony F. Griffiths |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Edward W. Lyman Jr.  |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Paul Murray          |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Bradley P. Martin    |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Stuart Ross          |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|Frank S. Wilkinson   |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 
|James W. McElvany    |  |           | 21,577,896 |  |               |  | -0- |                |  |  | 8,388 | 

Approval of the 2005 Hub International Limited Equity
Incentive Plan.




Appointment of Auditors.


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;                                                                                     
|
| |  | fluctuations in the demand for insurance products;                                                                                





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| |   |                                                                                                                                                              
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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


|     |  |                                                                                                                                                                                                                                                                          
|---- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|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.





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|QUARTERLY REPORT JUNE 30, 2005 | HUB INTERNATIONAL LIMITED 41



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##### 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)







|                            |                               
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|42HUB INTERNATIONAL LIMITED | QUARTERLY REPORT JUNE 30, 2005