Rusty Reid, Chairman & CEO, Higginbotham

Invest: sat down with Rusty Reid, chairman and CEO of insurance brokerage firm Higginbotham, to discuss its growth, achievements, and strategic priorities, exploring the firm’s regional footprint, its commitment to workplace culture, and its community impact.

What is the firm’s footprint in the region and what were its most significant achievements and milestones over the past year?

We are one of the leading national insurance brokerage firms in the country. Out of an estimated 35,000 independent agents and brokers in the U.S., we are ranked as the 20th largest brokerage firm. We are also the largest brokerage firm in the state of Texas and the Southeast, employing close to 4,000 people across 17 states. Texas alone accounts for about half of our revenue and workforce, underscoring its significance to our operations.

Our history dates back to 1948 when we were founded in Fort Worth. From there, we’ve expanded outward. Fort Worth itself has seen remarkable growth. It was recently recognized as one of the fastest-growing communities in the United States. The Dallas-Fort Worth metroplex is projected to reach a population of 8 million, making it larger than many states where we operate. This ongoing growth makes North Texas an incredibly dynamic market, offering both opportunities and challenges.

Reflecting on last year, we are especially proud of several milestones. Firstly, we celebrated our 76th year of operation, which is an achievement that highlights our long-standing presence and stability.

Additionally, we concluded the year on a high note, being named one of the best places to work by our employees. This recognition was particularly meaningful because it aligns with our core values: being family to our employees, accountable to our clients, teammates to our carriers, and generous to our communities. When employees acknowledge your workplace as exceptional, it’s the ultimate compliment.

Why is North Texas an ideal location for your headquarters?

North Texas offers several unique advantages that make it an ideal location for our headquarters. For context, if Texas were its own country, it would rank as the eighth largest economy in the world, which is a testament to the state’s economic scale and diversity. Historically, Texas was often associated solely with energy, but today, its economy is driven by a mix of industries: real estate, technology, healthcare, nonprofits, and innovation, particularly in medicine and life sciences.

North Texas specifically stands out due to its rapid population growth. Each year, hundreds of thousands of new residents move to Texas, making it one of the fastest-growing states in the nation. Only Florida experiences a similar influx. This growth fuels economic opportunities while also creating a responsibility to support and adapt to evolving market needs.

To give back to the communities we serve, we established the Higginbotham Community Fund. This fund enables our employees to direct grants to causes and nonprofits they care about, ensuring our philanthropic efforts align with the values of our team and clients. It’s important to us that our giving reflects the needs of the communities where we live and work. Employees can request grants on a quarterly basis, often supporting local causes that resonate with them. This collaborative approach strengthens our ties to the community and helps us contribute meaningfully to the areas we serve.

Given the diversity and growth in this region, how have you adapted your services to meet evolving client needs?

We’ve taken a strategic approach to adapt our services, focusing on building relationships that go beyond transactional interactions. While many brokerage firms concentrate on Day 1 — finding the best cost, coverage, and cash flow solutions — we place equal, if not greater, emphasis on what we call our Day 2 services. This is where the ongoing work happens, supporting our clients throughout the year.

For example, we assist clients in controlling their cost of risk, maintaining competitiveness, and addressing their unique business needs. A construction or real estate client might require help reviewing contracts to avoid signing agreements that expose them to uninsured risks. We provide legal support and policy alignment to navigate these complexities.

We also prioritize community impact and workplace safety, ensuring that as clients expand into new locations, they create safe environments for employees and customers alike. Our team includes licensed adjusters who assist clients through the claims process, especially after natural disasters such as storms, fires, or other catastrophic events. This hands-on approach helps clients recover more efficiently and effectively.

Additionally, we are heavily investing in technology and data analytics to provide real-time tools that keep our clients informed and supported. In the realm of employee benefits, we work closely with clients to implement wellness strategies, improving workplace health and fostering more engaged, productive teams. The goal is always to meet our clients where they are and provide support when and how they need it.

Considering economic challenges, what hurdles are your clients encountering, and how do you help them navigate these?

Economic growth brings its own set of challenges. For our clients, one of the main issues is balancing revenue growth with the resources needed to sustain it. Many businesses experience rapid expansion but struggle to build out the necessary infrastructure and teams to support that growth. To help with this, we offer outsourced HR services. These services act as an interim solution, providing clients with the expertise they need until they can establish their own teams.

One of the greatest lessons we’ve learned, and something Peter Drucker encapsulated perfectly, is that “culture eats strategy for breakfast.” A thriving economy means little if businesses don’t prioritize culture. We work with our clients to ensure they preserve the values and practices that make them successful, even as they expand and evolve.

How do you attract and retain top talent, and how would you describe your workplace environment?

Attracting and retaining talent starts with a strong foundation. For us, that means living by our mission, vision, and values. Our mission focuses on exceeding the expectations of our employees, our vision is to be the best employer we can be, and our values emphasize treating employees like family. These principles aren’t just words, they guide every decision we make.

Our workplace culture emphasizes collaboration and connection. Even during the pandemic, we saw employees returning to the office voluntarily because they valued the camaraderie and in-person relationships that are such a hallmark of working in Texas. We believe that visibility and interaction are essential for career growth, mentorship, and fostering a sense of belonging.

As an employee-owned firm, we also offer financial incentives beyond a regular paycheck. Through our synthetic equity plan and profit-sharing programs, all employees, from the receptionist to senior leadership, benefit directly from the company’s success. This shared sense of ownership and reward has been instrumental in keeping our turnover rate low, at around 5%-7%.

What are your top priorities for the next two to three years?

Our priorities for the next few years center around growth, innovation, and maintaining our core values. Economically, we’ve set ambitious milestones that align with the strategic goals we’ve been working toward for several years. We’re confident we’ll achieve them, but we’re equally focused on ensuring that our growth is sustainable and reflects our values.

We plan to expand our footprint, both through organic growth and acquisitions, and continue building specialty practices to support emerging industries. North Texas offers incredible opportunities, but our focus extends across all 17 states where we operate. Ensuring that we balance growth with culture will be critical to our success.

We are optimistic about the future. We’re fortunate to operate in markets that are thriving, and we’re proud of the partnerships we’ve built—with employees, clients, and trading partners. Our success is a collective effort, and we’re committed to continuing to grow in a way that benefits everyone involved.