In a deal that will propel it to
the largest independent wholesale distributor of life insurance in
the US, regional banking group BB&T is to acquire Crump Group’s
Crump Life Insurance Services and Crump Property & Casualty
Insurance Services. The cash deal is worth $570m.
BB&T chairman and CEO Kelly S
King said: “As the largest independent wholesale life insurance
distributor in the country, the Crump acquisition significantly
expands and strengthens our insurance operations.
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“The deal is a great strategic fit
for BB&T, immediately increasing and diversifying our fee
income while driving stronger revenues.”
BB&T, headquartered at
Winston-Salem in North Carolina, is the ninth-largest US bank based
on deposits. At the end of 2011 the bank reported total assets of
just under $175bn.
BB&T Insurance is already the
sixth -largest insurance broker in the US but is active only in the
general insurance market through its wholesale and retail units,
CRC Insurance Services, TAPCO Underwriters and
AmRisc.
The acquisition of the two Crump
units will add about $300m in annual revenue to the bank’s BB&T
Insurance broking unit. BB&T reported revenue from its
insurance operations of $1.044bn in 2011. This represented 14% of
its total revenue.
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By GlobalDataCrump Life Insurance Services
operates 23 offices throughout the US and supports the sale of
life, long-term care, disability, annuity products and life
settlements. According to Crump, it has relationships with more
than 100 life insurance companies and supports a network of more
than 200,000 producers and institutional clients.
The crump deal represents a
“transformational opportunity” for BB&T Insurance, commented
the units chairman and CEO Wade Reece.
“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,” said Reece.
After closure of the deal, privately-owned Crump’s remaining
major operation will be Ascensus, the largest independent record
keeper and administrator for retirement plans in the US.
