OWNERSHIP CHANGES
Source: Michael White Associates
BancWest Corporation, which is owned by BNP Paribas of Paris, France--one of the 10 largest banks (in assets) in the world--has agreed to buy Community First Bankshares of Fargo, North Dakota, a bank operating in 12 states, which has been an aggressive acquirer of property/casualty agencies. BancWest will pay $1.2 billion for Community First Bankshares. (www.communityfirst.com)
Community First's agency subsidiary (Community First Insurance Agency) has made 18 agency acquisitions since 2000. It now operates P-C agencies with 56 locations in Colorado, the Dakotas, Iowa, Minnesota, Nebraska, Utah and Wyoming. The agency subsidiary, which will now be part of BNP Paribas' international banking empire, produced $15.3 million in insurance revenues in 2003.
BancWest operates 296 branch banks in six Western states, including California, where its Bank of the West is the third largest commercial bank. Its other principal subsidiary is First Hawaiian Bank.
Community First's most recent agency acquisitions are:
Shepherd Insurance Agency, Englewood, Colorado; a book of insurance business of Western Insurance Agency, Cody, Wyoming; renewal rights to client accounts of Van Gilder Insurance Corporation, Sterling, Colorado.
The 2003 Year-End Bank Insurance & Investment Fee Income Report, published by Michael White Associates, (see graph at right) shows the impact that insurance income is having on the results of banks of all sizes. In 2003 banks increased their insurance commissions and fee income by 3% to $3.6 billion.
Gerard Cassidy, managing director, bank equity research, RBC Capital Markets, speaking at the Bank Insurance and Securities Association annual meeting in March, predicted further growth in bank acquisitions of insurance operations. Cassidy noted that banks that derive more than half their revenues from fees (which includes insurance commissions) are valued in the securities markets at a much higher multiple of earnings than are those with under 50% of their income from fees.
Following is other insurance agency acquisition news, involving both banks and national brokers.
Arthur J. Gallagher & Co. (www.ajg.com) acquires B&P International Insurance Brokerage LLC:
B&P International Insurance Brokerage LLC of Melville, New York, formed in 1980, is a full-service marine insurance broker and average adjusting firm offering all forms of specialty marine coverages, marine safety systems and adjusting services to their American-based large vessel operator clients. They are also the exclusive distributing agent of Videotel maritime training materials in the United States.
BB&T Insurance Services (www.bbandt.com) will buy Florida agency:
BB&T Insurance Services plans to buy Iler Wall & Shonter Insurance, Inc., of St. Petersburg, Florida. The agency was created in 1995 with the merger of the Iler and Wall and Shonter and Shonter insurance agencies. It generated more than $75 million in premiums in 2003. BB&T Insurance Services completed its first Florida acquisition (Landrum-Yaeger & Associates, Inc., of Tallahassee) in November 2002.
BNC National Bank (www.bnc.com) insurance subsidiary buys Salt Lake City agency:
Milne Scali & Company, a Phoenix, Arizona-based insurance agency subsidiary of BNC National Bank, has acquired the assets of the Richard Q. Perry Agency of Salt Lake City, Utah, effective March 31. The Perry Agency is a retail P-C and benefits firm. In addition to the Perry Agency, Scali has six agency offices in Arizona, three in North Dakota and Minneapolis, with a total of 142 employees.
BNC Bank has 22 locations in Arizona, Minnesota and North Dakota.
Brown & Brown (www.bbinsurance.com) acquires New York and New Jersey agencies:
Brown & Brown has acquired the assets of Barker, Heslip, Bradshaw Agency, Inc., of Rochester, New York. Barker, Heslip, Bradshaw Agency is a general insurance agency with annual revenues of approximately $1 million. Peter Barker and the agency staff will be combining their operations with Brown & Brown's existing Rochester office.
Brown & Brown acquired the assets of three agencies in Florham Park, New Jersey-- Statfeld Vantage Insurance Group L.L.C., Risk and Insurance Consulting Services, and Waldor Agency, Inc.
Statfeld Vantage Insurance Group is a general insurance agency with annual revenues of approximately $11 million, with a specialization in benefits consulting and plan design.
Insurance Consulting Services operated as a sole proprietorship.
The Waldor Agency is a general commercial P-C firm with annualized revenues of approximately $13 million.
The three New Jersey firms will become part of a new freestanding Brown & Brown profit center.
First Financial Bancorp (www.ffbc-oh.com) acquires second Indiana agency:
First Financial Bancorp, a Hamilton, Ohio-based bank holding company, acquired White & Havens Insurance Services of Highland, Indiana. It is First Financial's first broker acquisition since it acquired Wilson Lawson Meyers Insurance Agency of Connersville, Indiana, in February 2003.
Hilb, Rogal & Hobbs (www.hrh.com) acquires Banack Insurance Agency (Sid Banack Insurance), of Vero Beach, Florida:
Banack offers property/casualty, risk management services, employer services including employee leasing, and employee benefits. In 2003, it generated more than $5.5 million in revenue. Sidney M. (Sid) Banack, Jr., his partners and associates will continue to serve clients from their current offices in Vero Beach and Melbourne, Florida.
USI Holdings Corporation (www.usi.biz) acquires BR Corp.:
Bertholon-Rowland Corp. ("BR"), based in New York City, is an insurance program marketer and administrator focused on professional association-sponsored insurance programs. It produces annual revenues of approximately $25 million.
BR's products include professional liability, workers compensation and office liability coverage. Clients include national and regional bar associations, accountants' associations, and other professional associations serving more than 200,000 customers with both personal and business insurance products.
The Bertholon-Rowland family is made up of two additional components--American Insurance Administrators (AIA) and Travel Insurance Services (TIS). *