RALEIGH, N.C. and SAN DIEGO, April 23 /PRNewswire-FirstCall/ --
Raleigh, N.C.-based BB&T Insurance Services today said it has reached an
agreement with Union Bank of California, N.A., to purchase its San
Diego-based insurance subsidiary, UnionBanc Insurance Services Inc.
The acquisition would expand BB&T Corporation's insurance operation in
California, where wholesale insurance subsidiary CRC Insurance Services and
large account commercial insurer McGriff, Seibels & Williams already
operate.
The deal has been approved by the directors of BB&T Corporation (NYSE:
BBT) and Union Bank holding company UnionBanCal Corporation (NYSE: UB). It
is expected to be completed by the end of the second quarter pending
regulatory approval. Terms were not disclosed.
"We're excited about expanding in California, the No. 1 state for
insurance values in the country," said BB&T Insurance Services Chairman and
Chief Executive Officer Wade Reece. "This partnership will only strengthen
our overall investment on the West Coast."
Founded in 1922, BB&T Insurance Services is the nation's seventh
largest insurance broker. BB&T's combined insurance operation includes 134
agencies across the country.
With 369 employees, UnionBanc Insurance Services operates offices in
Pleasanton, San Rafael, Stockton and Roseville in Northern California; San
Diego, Irvine, Fullerton and Glendale in Southern California; and Portland,
Ore. It is the 31st largest insurance broker in the nation.
Union Bank entered the insurance brokerage business in 2001 with the
acquisition of Fullerton-based Armstrong/Robitaille Business and Insurance
Services. The additions of 115-year-old John Burnham and Company in 2002
and Pleasanton-based Tanner Insurance Brokers in 2003 expanded the
company's footprint into San Diego and Northern California. In late 2003,
Glendale-based Knight Insurance Agency joined the company.
UnionBanc Insurance Services is expected to operate as a wholly owned
BB&T insurance subsidiary after the acquisition is completed. Martin Loth,
who currently manages the McGriff, Seibels & Williams office in Irvine,
would oversee the new West Coast subsidiary of BB&T Insurance Services.
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.
"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," said Johannes (Johs) Worsoe, a
senior executive vice president with Union Bank and head of its Global &
Wealth Markets Group.
"We view insurance services as a critical component of our clients'
financial services needs. By entering into this transaction with BB&T, our
clients will have a broader offering of insurance and risk management
services by a nationally recognized leader and a company we know will
continue our high level of client service."
Merrill Lynch & Co. served as a financial advisor to Union Bank in the
transaction; Shearman & Sterling LLP served as the company's legal advisor.
BB&T Insurance Services, McGriff, Seibels & Williams and CRC Insurance
Services are wholly owned subsidiaries of BB&T Corporation principal
subsidiary Branch Banking and Trust Company. BB&T acquired CRC in 2002 and
McGriff two years later. Both companies are based in Birmingham, Ala.
Headquartered in San Francisco, UnionBanCal Corporation is a bank
holding company with $55.7 billion in assets at year-end. Its principal
subsidiary, Union Bank of California, N.A., had 330 banking offices in
California, Oregon and Washington, and two international offices at
year-end. The company's Web site is http://www.unionbank.com.
With $136.4 billion in assets, Winston-Salem, N.C.-based BB&T
Corporation is the nation's 14th largest financial holding company. It
operates nearly 1,500 financial centers in 11 states and Washington, D.C.
More information about the company is available at http://www.BBT.com.
SOURCE BB&T Corporation
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Related links:
http://www.bbt.com
http://www.unionbank.com
http://www.prnewswire.com/comp/809325.html /
CONTACT:
Wade Reece, Chairman and CEO, BB&T Insurance
Services, +1-919-716-9770; or Johannes Worsoe, Sr. Executive Vice
President, Union Bank of California, +1-213-236-6016; or John A.
Rice, Sr. Vice President, UBOC Inv. Relations, +1-415-764-2998;
or Jeff Nichols, Vice President, BB&T Corp. Comm.,
+1-336-733-1472
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