Financial Institutions has divested the assets of its subsidiary SDN Insurance Agency (SDN) to NFP, a property and casualty broker and benefits consultant, for nearly $27m (£21.48m).  

The all-cash deal is projected to eliminate $11.3m of goodwill and other intangible assets from Financial Institutions’ balance sheet and have a positive impact of 43 basis point on the pro forma year-end 2023 common equity tier 1 capital ratio. 

According to Financial Institutions, the transaction is almost four-times SDN’s 2023 insurance income. 

It also allows Financial Institutions to reinvest in its core banking franchise operations. 

Financial Institutions, a diversified financial holding company, is known for its banking and wealth management services through subsidiaries such as Five Star Bank and Courier Capital.  

New York-based SDN, which has been catering to the Buffalo community since 1923, provides a range of insurance solutions including commercial lines property and casualty (P&C) solutions along with employee benefits, surety and personal risk offerings. 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The acquisition of SDN is set to bolster NFP’s offerings in the north-east, particularly for middle-market clients. 

As part of this deal, SDN president Bill Gallagher will move to NFP and report to NFP north-east region co-president Mike Walsh. 

Walsh said: “This acquisition expands NFP’s presence in the Buffalo market, while also strengthening our position in Rochester, with an experienced and connected team of insurance professionals.  

“In addition to SDN’s consultative approach and expertise, which complement our P&C insurance and benefits consulting offerings, we are looking forward to working with a team that has a rich history and outstanding reputation in the western New York market.” 

Piper Sandler & Co served as the exclusive financial advisor to Financial Institutions, while Luse Gorman provided legal counsel. 

NFP was advised by Davis+Gilbert on legal matters. 

Meanwhile, NFP itself is in the process of being purchased by Aon in a $13.4bn deal, with this transaction scheduled to complete in the middle of this year. 

Recently, NFP expanded its footprint in the private medical insurance sector by acquiring London-based independent intermediary Get Medical Plans.