STT State Street Corporation

BB & T Corp.’s (BBT) subsidiary, BB&T Insurance Services, has announced the second acquisition within a week. The company is taking over Atlantic Risk Management Corporation of Columbia.

With this acquisition, BB&T will expand its footprints in attractive metro Baltimore area and have a broader representation in Washington, D.C., area as well. Though the terms and the value of the deal remained undisclosed, the agreement is expected to close in October.

Atlantic Risk, founded in 1981, is a commercial property and casualty and employee benefits broker, having a workforce of 45 people. The firm offers risk management consulting as well as business insurance products and services.

BB&T stated that after the completion of the transaction, Atlantic Risk would operate under the name – BB&T-Atlantic Risk Management. Furthermore, Ms. Mary Ann Marbury, the president of Atlantic Risk, will continue to oversee the operation. BB&T will be able to improve its customer relationship and also expand its market share by opening the door to new clients.

Mr. Pete Marcelli, the chairman and co-founder of Atlantic Risk, stated that with the completion of the proposed acquisition, its clients would be able to access a superior and broad range of insurance and risk management services.

On September 22, BB&T Insurance Services had announced the acquisition of San Jose, California-based Liberty Benefit Insurance Services. Though the terms and the value of the deal were not disclosed, the agreement is anticipated to close on October 1. Liberty, a full-service employee benefit broker, would operate as BB&T-Liberty Benefit Insurance Services, after the closure of the deal.

Apart from BB&T, recently State Street Corporation (STT) also announced the acquisition of Pulse Trading Inc., a Boston-based full-service agency brokerage firm. The deal, which is expected to close in the fourth quarter of 2011, would add 40 employees to State Street’s workforce.

Besides substantially increasing BB&T’s market share and footprints, these acquisitions would also improve the company’s top-line over the medium term.

BBT currently retains a Zacks # 3 Rank, which translates into a short-term ‘Hold’ rating.

 
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