UnionBanCal Corporation announced that its Union Bank of California, N.A., subsidiary has signed a definitive agreement to acquire San Diego-based John Burnham & Company, dba John Burnham Insurance Services, one of the nation’s largest privately held commercial insurance brokerages. Terms of the transaction were not disclosed.
The purchase reflects the bank’s strategy to provide added value to its commercial customers by offering a broader range of business and financial services. The deal marks the second insurance company acquisition for Union Bank, following the purchase last year of Fullerton, Calif.-based Armstrong/Robitaille Business and Insurance Services.
“This acquisition is an important milestone in executing our insurance strategy. John Burnham Insurance Services will become an integral partner for our commercial and retail customers both in our key San Diego market and in other regions throughout the state,” said Union Bank’s Dale Jansen, senior vice president and head of the bank’s insurance subsidiary.
Jansen added that Burnham, along with Armstrong/Robitaille, will provide Union Bank customers with a major insurance agency presence, particularly in the Southern California marketplace.
“This transaction comes at the beginning of a national trend of financial institutions actively seeking to acquire the best regional insurance brokers to expand their business offerings,” said Brad Orr, president and CEO of John Burnham Insurance Services. “The bank’s strategy of building a major agency presence in California will allow us to leverage greater insurance market access and combined premium volume to provide our clients and theirs with an even broader range of highly competitive products and services.”
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