Willis Re completes HRH acquisition
by David Masters
San Francisco-based Willis Re has completed a $2.1 billion acquisition of Hilb Rogal & Hobbs Company (HRH).
According to Willis, the acquisition will double both its geographical presence and revenues in North America, as well as strengthening areas of key practice.
The completed acquisition follows Willis’s announcement on 8th June 2008 that it had reached a definitive agreement with HRH to acquire the company.
By adding HRH - one of the biggest insurance and risk management intermediaries in the world - to its business, Willis has tripled its local presence in the US and Canada from 70 to 210 locations.
Willis is now ranked among the top three for 15 of the 20 largest US markets - compared to just 5 of the 20 markets before the merger.
Willis’ position outside North America is also strengthened, especially in the London market.
Revenues for 2008 are expected to reach $3.4 billion, compared with $2.6 billion in 2007.
Joe Plumeri, Willis chairman and CEO, said in a statement that the merger makes Willis ’stronger and more diverse’ with increased potential for growth.
He added that the acquisition means Willis will have access to some of the ‘best talent’ in the insurance industry, good news for both customers and shareholders.
HRH generated revenues of $800 million in 2007.
HRH shareholders will receive either $46 in cash, or 1.451 shares of Willis stock.
Willis North America has changed its name to Willis HRH.
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