BB&T Insurance Services To Acquire Union Bank of California Brokerage

Raleigh, N.C.-based BB&T Insurance Services has reached an agreement with Union Bank of California North America to purchase its San Diego-based insurance subsidiary, UnionBanc Insurance Services Inc.

The acquisition would expand BB&T’s insurance operation in California, where wholesale insurance subsidiary CRC Insurance Services and large account commercial insurer McGriff, Seibels & Williams already operate. UnionBanc Insurance Services is expected to operate as a wholly owned BB&T insurance subsidiary after the acquisition is completed. Martin Loth, who currently manages the McGriff, Seibels & Williams office in Irvine, Calif., would oversee the new West Coast subsidiary of BB&T Insurance Services.

When the acquisition is completed, BB&T plans to consolidate the California UnionBanc Insurance Services offices in San Rafael and Roseville into “BB&T-Tanner Insurance” in Pleasanton and Stockton. The company also plans to operate “BB&T Insurance Services of Orange County” in Fullerton and Irvine, “BB&T-John Burnham Insurance” in San Diego, and “BB&T-Knight Insurance” in Glendale. Additionally, the company plans to combine the Portland, Ore., office of UnionBanc Insurance Services with BB&T’s existing McGriff office there.

“We’ve made a decision to exit the insurance brokerage business in order to concentrate our efforts on enhancing other core fee-based lines of business, including wealth and asset management, institutional services, and capital markets-related activities,” said Johannes (Johs) Worsoe, a senior executive vice president with Union Bank and head of its Global & Wealth Markets Group.

The acquisition has been approved by the directors of BB&T Corp. and Union Bank holding company UnionBanCal Corp. The transaction is expected to be completed by the end of the second quarter, pending regulatory approval. Terms were not disclosed.

“This partnership will only strengthen our overall investment on the West Coast,” said BB&T Insurance Services Chairman and CEO Wade Reece

With 369 employees, UnionBanc Insurance Services operates offices in Pleasanton, San Rafael, Stockton and Roseville in Northern California; San Diego, Irvine, Fullerton and Glendale in Southern California; and Portland, Ore. Union Bank entered the insurance brokerage business in 2001 with the acquisition of Fullerton, Calif.-based Armstrong/Robitaille Business and Insurance Services. The additions of 115-year-old John Burnham and Co. in 2002 and Pleasanton, Calif.-based Tanner Insurance Brokers in 2003 expanded the company’s footprint into San Diego and Northern California. In late 2003, Glendale, Calif.-based Knight Insurance Agency joined the company.

Source: BB&T

Topics California Mergers & Acquisitions Agencies