WELLS FARGO BOLSTERS INSURANCE BUSINESS WITH AGREEMENT TO PURCHASE ACO BROKERAGE HOLDINGS CORPORATION
Minneapolis — March 8, 2001
Wells Fargo & Company and ACO Brokerage Holdings Corporation today announced they have signed a definitive agreement for Wells Fargo to purchase ACO, parent company of Acordia, Inc., one of the nation's largest independent property-and-casualty insurance agencies.
With over $400 million in annual revenue and 112 offices in 29 states, Acordia ranks fifth largest among all U.S. insurance agencies. Wells Fargo and ACO Brokerage Holdings expect the acquisition will be completed during the second quarter subject to regulatory approval. Terms were not disclosed.
"As a national leader in distributing a broad array of financial products, the acquisition of Acordia enhances our distribution capabilities and brings us closer to reaching our goal of having our insurance, trust, and brokerage businesses contribute 25 percent of our income," said Wells Fargo President and CEO Dick Kovacevich. "The growth of Wells Fargo Insurance and investment management demonstrates the progress we've made in evolving from banking to a diversified financial services organization."Back to Top
"Wells Fargo has been in the insurance business since the 1920's, and while we've had great success, we've been eager to acquire an agency that can strengthen our distribution capabilities and deliver insurance products to many more customers," said Tim King, president of Wells Fargo Insurance. "Acordia's highly trained work force and its outstanding distribution system make it the ideal partner to help us further meet all of our customers' insurance needs. Acordia is a good fit for Wells Fargo because it also has a decentralized management approach and supports local decision making."
King said that "this acquisition will give our organization greater clout in the nation's top insurance markets and more expertise in important niche industries. This means our clients will have better access than ever before to industry-leading insurance, employee benefits and financial service products."
"This is an ideal time in Acordia's history to become part of one of America's premier financial services companies," said Frank Witthun, president of Acordia. "Over the years we've had a tremendous record of growth, both through increased production in our existing operations and through the strategic acquisition of top local insurance brokerage companies across the nation. Joining Wells Fargo allows us to continue concentrating on expanding our property and casualty agency business while working with other Wells Fargo business partners to better serve our customers."
Acordia and Wells Fargo Insurance combined will have $630 million in revenue and 176 stores in 38 states - the largest bank-owned insurance agency in the country. Acordia has 3,860 team members including 780 agents, while Wells Fargo Insurance has 1,654 team members including 140 agents.Back to Top
Wells Fargo Insurance is a subsidiary of Wells Fargo & Company, a diversified financial services company with $272 billion in assets, providing banking, insurance, investments, mortgage and consumer finance from more than 5,400 stores and the Internet (wellsfargo.com ) across North America and elsewhere internationally.