Southeast Business Moves
North Carolina-based BB&T Corp. is buying the property/casualty and life insurance units of Roseland, N.J.- based insurance wholesaler Crump Group.
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 nation.
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 is expected to be completed in the first quarter.
BB&T has been 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 property/casualty 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 P/C division.
Alleghany Corp. stockholders have approved the previously announced merger agreement with Transatlantic Holdings. Under the deal, Transatlantic will be acquired and become an independent stand-alone subsidiary of Alleghany. Transatlantic stockholders also voted to approve and adopt the merger agreement.
Alleghany and Transatlantic said they expect the merger to close this quarter.
The cash-and-stock deal, which was announced on Nov. 20, 2011, is valued at around $3.4 billion. The merger would put to an end months-long takeover talks involving Transatlantic.
Harbor Insurance Agency, as part of its plan to expand its market, has purchased Fidelity Insurance Association.
Both agencies are located in Naples, Fla., and service the surrounding areas of Bonita Springs, Marco Island, Fort Myers, and other areas that are among Florida’s fastest growing communities.
Scott Leamon, president of Fidelity, will become vice president of Harbor Insurance.
Will Kastroll, owner of Harbor Insurance, will retain his current management position.
The two men say they have plans to purchase at least two more agencies this year.
The agencies are licensed in 25 additional states.