Chicago-based Hub International Ltd. announced on Tuesday strong growth in revenue and net earnings for the first quarter ended March 31.

Q1 revenue of US$171.8 million represented a US$37.7 million, or 28%, increase over Q1 2006 revenue of US$134.1 million. Q1 net earnings of US$24.7 million represented a US$8.3 million or 50% increase over Q1 2006 net earnings of US$16.5 million. Q1 2007 diluted earnings per share of US60¢ represented a US14¢, or 30%, increase over Q1 2006 diluted earnings per share of US46¢.

Quarterly total revenue organic revenue growth was 7.2%. Organic revenue growth calculations for Q1 exclude guaranteed supplemental commission revenue recorded during the quarter that historically would not have been recorded until 2008. Quarterly total organic revenue growth was 8.3% including guaranteed supplemental commission revenue, or 8.7% excluding the impact of foreign exchange. Organic revenue growth is a non-GAAP measurement that describes internal revenue growth from current operations owned at least one year.

Net earnings include a number of items that can distort comparisons between periods. A reconciliation of these items to a normalized net earnings amount is included in exhibits attached to this press release. Considering these items, normalized first quarter 2007 net earnings of US$26 million represented a US$5.3 million, or 25%, increase over normalized Q1 2006 net earnings of US$20.7 million. Normalized diluted earnings per share were US63¢ and US58¢, respectively, for Q1 2007 and 2006.

Quarterly total revenue growth of 28% included organic revenue growth of 7.2%, despite most hubs operating in declining rate environments. Commission income growth of 26% included organic commission income growth of 5.3%. Contingent commission and volume override revenue increased 32% including organic contingent commission and volume override revenue growth of 11.5%. Excluding the impact of foreign exchange, organic commission income growth was 5.7%.

For Canadian-based hubs, quarterly revenue of US$40.5 million represented a US$2.6 million, or 7%, increase from first quarter 2006 revenue of US$37.8 million. Organic commission income growth was 3.9% and organic revenue growth was 4.1%. Excluding the impact of foreign exchange, organic commission income and organic revenue growth was 5.3% and 5.5%, respectively. Canadian-based hubs are not presently affected by guaranteed supplemental commission arrangements.

Hub International also declared a quarterly dividend of US7¢ a share on the outstanding common shares of the company, payable on June 30 to shareholders of record as at the close of business on June 15. However, if the previously announced plan of arrangement pursuant to which Hub will be acquired by funds advised by Apax Partners together with Morgan Stanley Principal Investments is effective prior to the close of business on the record date, no dividend will be paid.