Wells Fargo Agrees to Sell Commercial Insurance Business to USI Insurance Services
June 27 2017 - 9:00AM
Business Wire
Personal Insurance business reporting to
Wells Fargo Consumer Lending
Wells Fargo & Company (NYSE:WFC) announced today it has
entered into an agreement with USI Insurance Services to sell Wells
Fargo Insurance Services USA (WFIS), which includes its Insurance
Brokerage and Consulting, Employee Benefits and Property &
Casualty national practices, along with Safehold Special Risk,
Small Business Insurance, Student Insurance, Individual Health and
Private Risk Management Insurance business lines. Terms of the
transaction, which is expected to close in the fourth quarter, were
not disclosed.
“The sale of the commercial insurance business reinforces Wells
Fargo’s focus on core banking products and services that best meet
the needs of our customers and support strong financial returns for
shareholders,” said Perry Pelos, head of Wells Fargo Wholesale
Banking. “By joining USI, an industry leader, the extremely
talented team of WFIS insurance professionals will be able to
continue to provide customers with products and services that best
meet their insurance and risk management needs.”
WFIS provides small business, middle market, large corporate and
high net worth clients with property and casualty, professional
risk, employee benefits, private risk solutions and targeted
insurance programs to specialized industries.
USI is headquartered in New York and is one of the largest
privately held insurance brokerage firms in the U.S., with more
than 4,400 associates in over 140 offices. In 2014, USI acquired
more than 40 smaller brokerage offices from Wells Fargo
Insurance.
“I’m confident USI is an excellent fit for our clients and our
team members, and I’m excited about the opportunities we will have
by bringing together our exceptionally strong and experienced
teams,” said Tim Prichard, head of Wells Fargo Insurance. “As we
move through the sale and transition process, our clients will
continue to receive excellent service and support."
In conjunction with the sale of the commercial brokerage
business, the Personal Insurance business will report into Consumer
Lending to ensure it is well positioned to continue to serve retail
customers. Wells Fargo’s Personal Insurance business provides
customers with access to personal insurance products, such as auto,
home, umbrella and renters insurance.
“Personal Insurance offers important protection for our
customers' homes and vehicles and gives them peace of mind,” said
Franklin Codel, head of Wells Fargo Consumer Lending. “We look
forward to welcoming the Personal Insurance team and extending the
valuable financial services capabilities they provide today to
consumers."
Wells Fargo Securities, the company’s investment banking arm,
served as exclusive financial advisor to Wells Fargo & Company
in connection with the transaction. Financial details related to
the transaction, including the sale’s expected gain to Wells Fargo,
were not disclosed. WFIS’s annual operating results are not
material to Wells Fargo. Completion of the transaction is subject
to regulatory approvals and is anticipated to close in the fourth
quarter.
About Wells Fargo & Company
Wells Fargo & Company (NYSE: WFC) is a diversified,
community-based financial services company with $2.0 trillion in
assets. Wells Fargo’s vision is to satisfy our customers’ financial
needs and help them succeed financially. Founded in 1852 and
headquartered in San Francisco, Wells Fargo provides banking,
insurance, investments, mortgage, and consumer and commercial
finance through more than 8,500 locations, 13,000 ATMs, the
internet (wellsfargo.com) and mobile banking, and has offices in 42
countries and territories to support customers who conduct business
in the global economy. With approximately 273,000 team members,
Wells Fargo serves one in three households in the United States.
Wells Fargo & Company was ranked No. 25 on Fortune’s 2017
rankings of America’s largest corporations. News, insights and
perspectives from Wells Fargo are also available at Wells Fargo
Stories.
About USI Insurance Services
USI is a leading local and national insurance brokerage and
consulting firm, delivering property and casualty, employee
benefits, personal risk and retirement solutions throughout the
United States. Headquartered in Valhalla, New York, USI has over
$1.0 billion in revenue, employs more than 4,400 professionals and
operates out of 140 local offices serving every state. USI has
become a premier insurance brokerage and consulting firm by
leveraging the USI ONE Advantage®, an interactive platform that
integrates proprietary and innovative client solutions, networked
local resources and enterprise-wide collaboration to deliver
customized results with positive, bottom line impact. USI attracts
best-in-class industry talent with a long history of deep and
continuing investment in our local communities. For more
information, visit usi.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20170627005478/en/
MediaKathryn Ellis,
415-314-6783Kathryn.d.ellis@wellsfargo.comorInvestor
RelationsJim Rowe, 415-396-8216Jim.rowe@wellsfargo.com
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