News Release
HUB INTERNATIONAL TO ACQUIRE THE RIGG GROUP
Deal Creates HUB Platform in Texas, Future Opportunities
CHICAGO, ILLINOIS – Aug. 1, 2007: 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.
MEDIA CONTACTS:
W. Kirk James
Vice President, Secretary and
Chief Corporate Development Officer
Phone: 312.279.4881
Kirk.james@hubinternational.com
Heather Schneider
Corporate Communications Director
Phone: 312.279.4683
Heather.schneider@hubinternational.com
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