Hub buys Dallas insurance broker

CHICAGO--Hub International Ltd. said Wednesday it entered a definitive agreement to acquire all of the stock of Dallas-based insurance broker the Rigg Group Inc.

With Rigg, Chicago-based Hub acquires retail brokerage Wm. Rigg Co., wholesale brokerage RISC Inc., and life and benefits brokerage Rigg Benefits & Financial Services.

Terms of the transaction were not disclosed.

Rigg, which employs approximately 235 people, will become a new regional platform for Hub and will do business as Hub International Rigg, with offices located in Dallas, Fort Worth and Houston.

Upon completion of the transaction, Cecil Ray, Rigg's current chief executive officer, will retire. The new Hub Rigg executive management team will include William W. Meadows, chairman; R. Jay Scheideman, chief operating officer; Stephen B. Smith, president of retail; William D. Staub, president of wholesale; and J. Charles Reynolds, president of employee benefits.

According to Business Insurance's annual rankings, Hub is the 12th-largest broker of U.S. business, with $391.8 million in 2006 brokerage revenues.