KeyCorp Aims to Leverage First Niagara’s Insurance Brokerage Business in N.Y.

Financial services company KeyCorp, which recently announced its plan to acquire First Niagara Financial Group in Buffalo, New York, said the company would leverage and grow First Niagara’s insurance brokerage business across KeyCorp’s customer base.

KeyCorp, a bank-based financial services company headquartered in Cleveland, announced on Oct. 30 that it entered into a definitive agreement to acquire First Niagara Financial Group in a cash and stock deal valued at approximately $4.1 billion.

KeyCorp’s Chief Financial Officer Don Kimble said during a call with analysts on Oct. 30 about the deal that “the potential to leverage to combine product offerings is one of the more exciting aspects of this transaction.”

“First Niagara was on the path to build up many of their commercial products and services. This transaction accelerates that development and offers significant opportunities in treasury management and investment management areas. First Niagara has also grown a nice insurance business that we can leverage across our customer base,” Kimble said.

KeyCorp provides deposit, lending, cash management and investment services to individuals and businesses through more than 990 branches and approximately 13,590 employees in 12 states under the name KeyBank National Association. KeyCorp’s insurance offerings are currently provided through third parties.

First Niagara Financial Group, through its subsidiary, First Niagara Bank, N.A., is a community-oriented bank with some 390 branches and approximately 5,400 employees providing financial services to individuals and businesses across New York, Pennsylvania, Connecticut and Massachusetts.

First Niagara Financial Group had $71.125 million in insurance brokerage fee income in 2014 according to Michael White’s Bank Insurance Fee Income Report – 2015 Edition, and was ranked 10th-largest bank holding company in terms of insurance brokerage fee income by Insurance Journal this year. First Niagara said it currently employs 346 staff members in its risk management business.

Topics New York Agencies