SAN FRANCISCO - January 23, 2014
With an increased focus on serving middle and upper middle market customers in key markets, Wells Fargo Insurance, part of Wells Fargo & Company (NYSE: WFC), has entered into an agreement with USI Insurance Services to sell 42 of its primarily smaller regional insurance brokerage and consulting locations. The sale is part of Wells Fargo’s ongoing strategy to focus investments and resources in select markets, including Charlotte, Dallas, Minneapolis and San Francisco, where the insurance business has the greatest growth potential and stronger partnerships with the bank’s commercial customers. The terms of the transaction, which is expected to close in Q2-2014, were not disclosed.
“Wells Fargo is 100 percent committed to the insurance business and serving the needs of our customers,” said Laura Schupbach, head of Wells Fargo Insurance. “We are focused on strengthening our insurance operations in larger markets where we can partner more closely with the bank to serve more of our core middle and upper middle market customers.”
USI is headquartered in New York and is the 14th largest insurance broker in the world. All Wells Fargo team members who are actively working in the select IBC locations at the time the transaction closes will be offered continuous employment by USI.
Through its Insurance Brokerage and Consulting (IBC) business, Wells Fargo provides national resources for property and casualty insurance and employee benefits as well as targeted insurance programs for industries such as real estate, healthcare, energy, special risk, public entity, aviation, and hospitality. The business provides insurance consulting, sales and services to middle market, upper middle market, international and risk management customers. Upon close of the transaction, Wells Fargo’s IBC business will operate in 55 locations.
Under the agreement, USI anticipates acquiring the following locations: (Ala.) Birmingham, Tuscaloosa; (Alaska) Anchorage; (Calif.) Fresno, Grass Valley; (Fla.) West Palm Beach; (Ga.) Savannah; (Idaho) Boise; (Ill.) Springfield; (Ind.) Elkhart, Fort Wayne; (Kan.) Overland Park; (Ky.) Lexington, Louisville; (Mich.) Grand Rapids; (Minn.) Grand Rapids, St. Cloud, Virginia; (Neb.) Omaha; (N.M.) Albuquerque; (N.D.) Bismark, Minot, Valley City; (Ohio) Dayton, Youngstown; (Ore.) Eugene, Newport; (Pa.) Erie; (S.C.) Columbia; (Tenn.) Knoxville; (Texas) El Paso; (Utah) Salt Lake City; (Va.) Abingdon, Bluefield, Grundy, Norfolk; and (W. Va.) Beckley, Charleston, Huntington, Martinsburg, Morgantown, Wheeling.
Recently named North America’s Best Insurance Broker by Global Finance Magazine, Wells Fargo Insurance provides solutions for a wide range of customers, including retail consumers, high net worth individuals, small businesses, as well as middle market and large corporate customers. Wells Fargo Insurance writes or places $15 billion of risk premiums annually in property, casualty, benefits, international, personal lines, and life products and also includes the nation’s largest crop insurance provider, Rural Community Insurance Services (RCIS).
Wells Fargo Securities served as exclusive financial advisor to Wells Fargo Insurance Services in connection with the transaction.
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.5 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, and the Internet (wellsfargo.com), and has offices in more than 35 countries to support the bank’s customers who conduct business in the global economy. With more than 270,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2013 rankings of America’s largest corporations. Wells Fargo’s vision is to satisfy all our customers’ financial needs and help them succeed financially.
About USI Insurance Services
USI is the 3rd largest privately held insurance broker , the 4th largest commercial lines broker in the United States and the 14th largest insurance brokerage firm in the world . With more than 4,000 dedicated, experienced and innovative professionals, USI is a leader in middle market property-casualty, employee benefits, personal lines, retirement, program and specialty business. USI has been recognized for its innovation by Information Week 500 the last three years and Best’s Review January 2014 Innovation Showcase. USI is headquartered in Valhalla, N.Y. and operates out of more than 100 offices across the United States. Additional information about USI may be found at www.usi.biz.