BB&T Insurance Services has reached an agreement with Union Bank of California to purchase its SanDiego-based insurance subsidiary, UnionBanc Insurance Services.
The acquisition will expand BB&T Corporation’s insurance operation in California, where its wholesale insurance subsidiary CRC Insurance Services and account commercial insurer McGriff, Seibels & Williams already operate.
The deal has been approved by the directors of BB&T Corporation and Union Bank holding company UnionBanCal Corporation. It is expected to be completed by the end of the second quarter of 2008 pending regulatory approval. Terms were not disclosed.
When the acquisition is completed, BB&T plans to consolidate the UnionBanc Insurance Services offices in San Rafael and Roseville into ‘BB&T-Tanner Insurance’ in Pleasanton and Stockton. It also plans to operate ‘BB&T Insurance Services of Orange County’ in Fullerton and Irvine, ‘BB&T-John Burnham Insurance’ in San Diego, and ‘BB&T-Knight Insurance’ in Glendale. It plans to combine the Portland office of UnionBanc Insurance Services with BB&T’s existing McGriff office there.
Johannes Worsoe, senior executive vice president and head of global/wealth markets group at Union Bank said: We’ve made a decision to exit the insurance brokerage business in order to concentrate our efforts on enhancing other core fee-based lines of business, including wealth and asset management, institutional services, and capital markets-related activities.