Hub International Limited announced today that it has entered into a definitive agreement to acquire all of the stock of The Rigg Group, Inc. (Rigg), one of the largest Texas-based insurance brokers, including its subsidiaries Wm. Rigg Co. (a retail insurance brokerage), Rigg Insurance Managers, Inc. (d/b/a RISC Inc., a wholesale insurance brokerage), and Rigg Life Agency, Inc. (d/b/a Rigg Benefits & Financial Services, a life and benefits brokerage). Rigg will become a new regional platform (hub) doing business as Hub International Rigg (HUB Rigg) with offices located in Dallas, Fort Worth and Houston. Terms of the transaction were not disclosed.
Rigg is a leading insurance brokerage and risk management organization providing primarily property/casualty, employee benefits, executive risk management, personal lines and enterprise risk management products and services. Its client base includes many of the region's premier organizations from the energy, marine, design professionals, government, transportation, construction and manufacturing sectors. Rigg employs approximately 235 people.
“We are excited to have Rigg, a company known for its industry expertise and respected leadership, join the HUB family,” said Martin P. Hughes, CEO and Chairman of Hub International. “With 112 years of client service, it is no surprise that Rigg is so well established within its local communities. We look forward to building in the Southwest marketplace with this thriving organization and continuing its emphasis on client solutions and growth.”
“We view this as a powerful change, since the combination of our prominent sales and service teams will enhance carrier and client relationships,” said Cecil Y. Ray, Jr., Chairman and Chief Executive Officer of Rigg. “The HUB transaction benefits our employees, clients and business partners as we will offer a broader spectrum of products and expand upon our ongoing commitment to client services, integrity and trust. By adding the resources and strength of HUB, a premier North American brokerage, to our existing abilities, our clients and partners can expect more choices and an even greater network of expertise.”
The closing of the transaction is subject to various conditions, including expiration or termination of applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions. The parties expect to close the transaction during the third quarter of 2007.
When the transaction closes, Cecil Ray, current Rigg CEO, will retire, and the HUB Rigg executive management team will consist of William W. (Bill) Meadows, Chairman; R. Jay Scheideman, Chief Operating Officer; Stephen B. Smith, President of Retail; William D. Staub, President of Wholesale; Charles Reynolds, President of the Employee Benefits; Thomas Gillis, Executive Vice President and Manager of HUB Rigg operations in Dallas; and Brad Johnson, Executive Vice President and Manager of HUB Rigg operations in Houston.
Founded in 1998 and headquartered in Chicago, IL, Hub International Limited is a leading North American insurance brokerage that provides a broad array of property and casualty, reinsurance, life and health, employee benefits, investment and risk management products and services through more than 250 offices located in the United States and Canada. In 2006 Hub International Limited reported revenue of US $544 million.