Pa.’s Sterling Financial Sells 3 Insurance Units

Sterling Financial Corp. announced the sale of three insurance-related businesses: Corporate Healthcare Strategies, LLC, an employee benefits insurance broker; Professional Services Group, a human resources consulting business; and the property and casualty insurance accounts of the Lancaster Insurance Group, LLC.

“While we found offering these additional services to our customers beneficial as Sterling-owned affiliates, they never became meaningful contributors to the bottom line,” said J. Bradley Scovill, chief revenue officer of Sterling Financial Corp. He said his firm will continue to provide real estate settlement/title insurance services and offer products such as annuities and life insurance as well as credit-related insurance products.

Corporate Healthcare Strategies is being purchased by David K. Stoudt, its current president. He is also purchasing the closely related Professional Services Group consulting business. In the third quarter, Sterling took an impairment charge related to changes in the market for employee benefits brokerage services and sold the CapRisk wholesale underwriting portion of Corporate Healthcare Strategies. “This sale simply brings to conclusion the strategic review that we began in the third quarter,” added Scovill.

In the case of Lancaster Insurance Group, the accounts are being sold to Murray Insurance Associates, Inc., the company that has been servicing these accounts since 1999.

“We wanted to do this in a way that would be right for our customers,” said Scovill. “Customers of all three businesses should see little change in their existing service, since it will essentially be the same people, addresses, phone numbers and services offered.”

Each of the businesses referenced has its headquarters in Lancaster, Pa.

With assets of $3.1 billion and investment assets under administration of $2.8 billion, Sterling Financial Corp. is a diversified financial services company based in Lancaster, Pa. Sterling Banking Services Group affiliates offer banking services in south-central Pennsylvania, northern Maryland and northern Delaware. The group also offers correspondent banking services in the mid-Atlantic region to other companies within the financial services industry. Sterling Financial Services Group affiliates provide specialty commercial financing; fleet and equipment leasing; investment, trust and brokerage services; and insurance services.

Source: Sterling Financial Corp.
www.sterlingfi.com

Topics Mergers & Acquisitions