USI Insurance Services has agreed to acquire the commercial insurance business of Wells Fargo & Co (NYSE: WFC). No financial terms were released for the deal, which is expected to close in the fourth quarter. Valhalla, New York-based USI said the acquisition will create a comprehensive suite of property and casualty, employee benefit, personal risk and retirement solutions. USI was earlier this year sold by Canadian private equity firm Onex Corp to U.S. private equity firm KKR & Co and Caisse de dépôt et placement du Québec (CDPQ) for US$4.3 billion. CDPQ and PSP Investments helped finance the Wells Fargo transaction.
USI Insurance Services Announces Agreement to Purchase Wells Fargo Commercial Insurance Business
VALHALLA, N.Y., June 27, 2017 /PRNewswire/ — USI Insurance Services (“USI”) has entered into an agreement with Wells Fargo & Company (“Wells Fargo”) (NYSE: WFC), to purchase 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 were not disclosed. The transaction is expected to close fourth quarter 2017, subject to, among other customary conditions, expiration or termination of the waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended.
Michael J. Sicard, chairman and CEO, USI Insurance Services, said: “This is a transformational transaction for both USI and Wells Fargo Insurance. Together, we create a premier industry leader with an un-matched team of exceptional sales consultants, account executives, technical resources and team members. We share a common culture and values, including a focus on delivering a truly different and better set of solutions with bottom line impact. We call it the USI ONE Advantage®, a disruptive combination of expertise and innovation. Together, we bring a full suite of distinctive property & casualty, employee benefit, personal risk and retirement solutions, to middle market, large corporate, small business and individuals. We are excited to join together with our new partners, and create an exciting, new home for our existing and future team members who want to be a part of a fast growing, innovating industry leader.”
Jones Day and Simpson Thacher & Bartlett LLP are serving as legal advisors to USI. PSP Investments and CDPQ, through its opportunistic credit activities, provided a portion of the committed financing for the transaction.
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.
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.
Edward J. Bowler
USI Insurance Services: firstname.lastname@example.org
Cecile M. Locurto
USI Insurance Services: email@example.com
Photo courtesy of Reuters/Robert Galbraith