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.
“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.
Crump 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.