US-based international insurance broker Hilb Rogal and Hobbs Company has signed a definitive agreement to acquire the stock of the UK's Glencairn Group, an independent Lloyd's insurance and reinsurance broker group.
According to Hilb Rogal and Hobbs (HRH), which claims to be the world’s 10th largest insurance and risk management intermediary, the purchase price will consist of all cash and deferred consideration and will be financed through the company’s existing revolving credit facility.
Glencairn offers its products and services to a global client base and, in addition to its London headquarters, the group has offices in Russia, Australia and Africa. Upon the completion of the acquisition on January, 2 2007, Steve Hearn, current chairman and CEO of Glencairn, will be appointed CEO of HRH’s existing London operations, while continuing to lead his current staff.
Mr Hearn commented, By partnering with HRH, Glencairn will have increased access to capital resources and capabilities. We look forward to continuing to serve our clients with the same teams they have worked with for years, and feel that HRH is an extremely good fit, both culturally and strategically.
Martin Vaughan III, HRH chairman and CEO, commented that uniting Glencairn with the company’s existing London operations would triple HRH’s size in the UK. He said: Our expanded presence in this marketplace will allow HRH increased access to the Lloyd’s of London market and other critical international underwriting markets, including Bermuda. We are looking forward to serving our clients with global insurance needs with these increased capabilities.