B&T, UnionBanc Insurance
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 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.
NSM Insurance, Insurex
NSM Insurance Group, a national wholesaler and program manager based in Conshocken, Pa., has acquired Insurex, a California-based workers’ compensation brokerage.
The acquisition “immediately expands our ability to provide new national workers’ compensation markets to our independent agent and broker customers” said Dan McCarthy, CEO, Insurex.
NSM believes the acquisition will leverage its market share on the West coast, said Geof McKernan, CEO, NSM Insurance Group. “We continue to aggressively seek program administrator or specialty underwriting acquisitions in the southeast and southwest states,” Geof added.
NSM Insurance Group has offices in Texas, Florida and New York.
Alfa Corp.
Montgomery, Ala.-based Alfa Corp. is now a wholly owned subsidiary of the Mutual Group, comprised of Alfa Mutual Insurance Co. and Alfa Mutual Fire Insurance Co.
Alfa Corp. requested that its common stock cease to trade on the NASDAQ Global Select Market effective on April 15 and subsequently expects to suspend its reporting obligations under the Securities and Exchange Act of 1934, as amended.
Lloyd’s Brazil Reinsurer
Lloyd’s has received approval from the Superintendence of Private Insurance (SUSEP) to become the first admitted reinsurer in Brazil. Lloyd’s applied for the license in February.
Going into the Brazilian reinsurance market follows the country’s legislative changes to reduce collateral requirements and open up Latin America’s largest insurance market. A number of foreign reinsurers have expressed an interest in entering Brazil as an admitted reinsurer.
Lloyd’s has established its first Brazilian representative office in Rio de Janeiro and looks to enhance its presence elsewhere in the country over time in line with business development opportunities.
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