US underwriter BancorpSouth Insurance Services, a subsidiary of BancorpSouth Bank has struck a deal to buy the assets of the Securance Group, for an undisclosed amount.
BancorpSouth chairman and CEO Aubrey Patterson said the agreement to acquire the assets of Securance Group reflects the firm’s long-term strategy to expand its successful insurance brokerage business, already among the banking industry’s largest.
"The growth of our insurance business has been a key contributor to the expansion of our fee-based revenues. Insurance commission revenue accounted for nearly one-third of noninterest revenue for 2011, which, in turn, increased to a record 38.4% of total revenue for the year," Patterson said.
"Our insurance services enable BancorpSouth to serve more of our clients’ needs, while diversifying and enhancing the stability of the Company’s total revenue."
BancorpSouth Insurance Services vice chairman of financial services James Threadgill said, "While expanding our existing agency franchise, the pending Securance Group acquisition will also help solidify our Alabama market coverage by complementing our existing Mobile and Birmingham market areas."
The insurer also has plans to acquire Alabama Agency, which would increase BancorpSouth’s existing insurance brokerage market presence in Alabama.
BancorpSouth Insurance Services manages nearly 26 offices, with more than 500 associates serving clients across the US.