WINSTON-SALEM, N.C.,
April 6, 2018 /PRNewswire/
-- BB&T Corporation (NYSE: BBT) announced today that
BB&T Insurance Holdings, Inc. (BB&T Insurance) has reached
an agreement to acquire Regions Insurance Group (Regions Insurance)
from Regions Financial Corporation (NYSE: RF).
Regions Insurance is a leading insurance broker serving more
than 60,000 clients across the Southeast, Texas and Indiana. It offers property and casualty and
employee benefits products to businesses through a retail network
of insurance professionals. This acquisition adds incremental
balance to BB&T's insurance business between its wholesale and
retail insurance channels. Following this acquisition, BB&T
Insurance's retail network will contribute almost half of its
insurance brokerage revenue.
"Regions Insurance significantly adds to our retail insurance
network providing us the opportunity to further build out our
footprint in core BB&T markets across the Southeast," said
BB&T's chairman and chief executive officer, Kelly S. King. "With this acquisition, BB&T
increases the contribution from our insurance brokerage business to
almost $2 billion in annual revenue
and further affirms our commitment to growing the business."
"This acquisition reinforces our current position as the fifth
largest insurance broker in the U.S. and globally," said
John Howard, chairman and chief
executive officer of BB&T Insurance. "We have great respect for
Regions Insurance, its leadership and its associates. We welcome
Rick Ulmer, president and chief
executive officer of Regions Insurance, and other Regions Insurance
associates who will be joining BB&T Insurance in senior
leadership and other positions. With a broader set of resources
available to them, Regions' insurance professionals will be better
equipped to meet the needs of their clients. We have confidence
that our organizations will fit extremely well together."
This transaction is expected to close in the third quarter of
2018, subject to satisfaction of customary closing conditions.
Terms were not disclosed. The capital used in this transaction will
impact BB&T's 2018 Comprehensive Capital Analysis and Review.
The use of capital in this acquisition exceeds BB&T's internal
rate of return hurdles.
RBC Capital Markets served as financial advisor and Willkie
Farr & Gallagher LLP served as legal counsel to BB&T
in this transaction.
BB&T will post a presentation to its website discussing the
transaction. To access the presentation, go to BBT.com.
About BB&T Insurance Holdings
BB&T Insurance Holdings, the fifth largest insurance broker
in the U.S. and internationally, is a wholly owned subsidiary of
BB&T Corporation. BB&T Insurance Holdings operates more
than 200 offices through subsidiaries BB&T Insurance Services,
BB&T Insurance Services of California, McGriff, Seibels
& Williams, CRC Insurance Services, Crump Life Insurance
Services and AmRisc, LLC.
About BB&T
BB&T is one of the largest financial services holding
companies in the U.S. with $221.6
billion in assets and market capitalization of approximately
$38.9 billion, as of Dec. 31, 2017. Building on a long tradition of
excellence in community banking, BB&T offers a wide range of
financial services including retail and commercial banking,
investments, insurance, wealth management, asset management,
mortgage, corporate banking, capital markets and specialized
lending. Based in Winston-Salem,
N.C., the company operates more than 2,000 financial centers
in 15 states and Washington, D.C.
A Fortune 500 company, BB&T is recognized consistently
for outstanding client service by Greenwich Associates for small
business and middle market banking. More information about BB&T
and its full line of products and services is available at
BBT.com.
Forward-Looking Statements
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, regarding the financial condition, results of operations,
business plans and the future performance of BB&T.
Forward-looking statements are not based on historical facts but
instead represent management's expectations and assumptions
regarding BB&T's business, the economy and other future
conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances difficult to predict. BB&T's actual
results may differ materially from those contemplated by the
forward-looking statements. Words such as "anticipates,"
"believes," "estimates," "expects," "forecasts," "intends,"
"plans," "projects," "may," "will," "should," "could" and other
similar expressions are intended to identify these forward-looking
statements. Such statements are subject to factors that could cause
actual results to differ materially from anticipated results. While
there is no assurance any list of risks and uncertainties or risk
factors is complete, important factors and other risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements are more fully
discussed under Item 1A-Risk Factors in our Annual Report on Form
10-K for the year ended December 31,
2017 and in any of BB&T's subsequent filings with the
Securities and Exchange Commission.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
report. Actual results may differ materially from those expressed
in or implied by any forward-looking statement. Except to the
extent required by applicable law or regulation, BB&T
undertakes no obligation to revise or update publicly any
forward-looking statements for any reason.
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SOURCE BB&T Corporation