North Carolina-based BB&T Corp. is buying the property/casualty and life insurance units of Roseland, N.J.- based insurance wholesaler Crump Group.
Under the terms of the agreement, BB&T said it will pay $570 million in cash for Crump Property/Casualty Insurance Services and Crump Life Insurance Services, along with the rights to the Crump name. John Howard, CEO of Crump Group, will also join BB&T insurance operations in a senior leadership position reporting to Wade Reece, CEO of BB&T’s insurance division.
BB&T is one of the 10 largest banks in the country in terms of deposits and one of the nation’s largest insurance brokers.
Crump Group is one of the largest wholesale insurance distributors in the United States.
Dave Obenauer, president of Crump Property/Casualty Insurance Services, will lead the integration efforts with BB&T’s wholesale property/casualty channel. Brian Winikoff, president of Crump Life Insurance Services, will continue in that capacity. Both Obenauer and Winikoff will continue to report to Howard.
The acquisition does not include Ascensus, Crump’s retirement services business, which Crump said will continue business as usual after this transaction.
The acquisition is expected to add roughly $300 million in annual revenue to BB&T Insurance. The transaction, which is subject to regulatory approval, is expected to be completed in the first quarter.
Crump P/C Insurance Services offers products in areas ranging from standard coverage to excess and surplus lines. Crump’s specialty programs are managing general agents offering underwriting expertise in transportation, workers’ comp, professional liability, personal accident, and other lines of business. Crump Life Insurance Services supports the sale of life, long-term care, disability and annuity products, and life settlements. It has relationships with more than 100 life insurance companies and supports a network of more than 200,000 producers and institutional clients.
“As the largest independent wholesale life insurance distributor in the country, the Crump acquisition significantly expands and strengthens our insurance operations,” said BB&T’s CEO Kelly King. “The deal is a great strategic fit for BB&T, immediately increasing and diversifying our fee income while driving stronger revenues.”
Wade Reece, BB&T Insurance CEO, added that “This is an opportunity for BB&T to become a significant and strategic player in the high-growth, high-margin life insurance distribution business and expand our property and casualty business.”
BB&T Continues to Expand Insurance Unit
BB&T has been aggressively expanding its insurance brokerage operations, as part of its corporate strategy to grow revenues apart from its banking activities.
Last October, BB&T purchased Atlantic Risk Management Corp., a commercial P/C and employee benefits broker in Columbia, Md, as well as Liberty Benefit Insurance Services, an employee benefits broker in San Jose, Calif.
BB&T’s wholesale insurance operations include property/casualty broker CRC Insurance Services, managing general agent Southern Cross TAPCO Underwriters and managing general underwriter AmRisc LLP. Including its retail operations, BB&T Insurance is the sixth largest insurance broker in the U.S.
In 2005, Crump was purchased by private equity firm J.C. Flowers & Co, LLC. In 2007, J.C. Flowers & Co, LLC. purchased the Insurance and Retirement Divisions of the BISYS Group and combined the Crump and BISYS entities to make up Crump Group. In 2008, Crump Insurance Services was consolidated with BISYS Commercial Insurance Services (including Tri-City Brokerage) to form an expanded property/casualty division.
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