ROSELAND, N.J.--(BUSINESS WIRE)--Crump Group, Inc. (CGI) announced today that its life insurance and property and casualty insurance divisions are being sold to BB&T (NYSE:BBT) along with the rights to the Crump name. CGI President and Chief Executive Officer John Howard said, “This transaction will be a positive development for our insurance clients and carriers, who will have access to greater resources and capabilities, as well as our employees, who will become part of one of the largest global providers of insurance services,” adding that the company’s retirement services division, Ascensus, will continue business as usual after this transaction.
“Ascensus has been largely independent of the rest of CGI given its unique focus on the retirement plan market. Ascensus has delivered strong financial performance during very difficult market conditions and post this transaction the business will be extremely well capitalized and well positioned for the future. Our focus will continue on growing our business through investing in our people, providing great service to our clients and in turn providing strong financial returns to our investors,” said Ascensus President Bob Guillocheau.
Howard will join BB&T in a senior leadership role, reporting to Wade Reece, BB&T Insurance chairman and chief executive officer. Reece views the acquisition of Crump as a transformational opportunity, saying, “We’ve known and respected Crump for years and consider them an industry leader. This is an opportunity for BB&T to become a significant and strategic player in the high-growth, high-margin life insurance distribution business and expand our property and casualty interests.” The acquisition will double BB&T’s wholesale insurance business and create the largest wholesale broker in the U.S.
“BB&T and Crump share a strong commitment to our clients and employees, as evidenced by our consistently high customer satisfaction scores, industry awards and strong financial growth,” Howard said. “We’re excited about this partnership and look forward to bringing a robust life platform and the wide range of Crump products and services, unique expertise, and our high-touch, caring approach to BB&T’s clients.”
Brian Winikoff, president of Crump Life Insurance Services, will continue in that capacity. Dave Obenauer, president of Crump Property & Casualty Services, will lead the integration efforts with BB&T’s wholesale property and casualty channel. Both Winikoff and Obenauer will continue to report to Howard.
J.P. Morgan Securities LLC, Sandler O’Neill + Partners, L.P. and Morgan Stanley served as financial advisors and Debevoise & Plimpton LLP served as legal advisor to Crump Group, Inc. in this transaction.
About Crump Group, Inc.
Crump Group, Inc. is the second largest wholesale insurance distributor in the United States, and through its Ascensus division is the largest independent U. S. provider of recordkeeping and support services to company-sponsored retirement plans in the micro to large segments of the market. Its Property & Casualty Insurance Services division is among the largest U.S. providers of wholesale brokerage and specialty programs to the commercial property and casualty insurance industry. Crump Life Insurance Services is among the largest wholesale distributors of services that support the sale of life-related insurance and annuity products.
About BB&T Insurance
Raleigh, N.C.-based BB&T Insurance, the sixth largest insurance broker in the U.S. and the seventh largest internationally, is made up of a group of subsidiaries of BB&T Corp. BB&T Insurance operates more than 100 retail insurance agencies in North Carolina, Virginia, Georgia, South Carolina, Maryland, West Virginia, Tennessee, Florida, Kentucky and California. McGriff, Seibels and Williams operates eight retail agencies in Alabama, Georgia, Texas, Louisiana, Missouri, North Carolina and Oregon. BB&T’s wholesale insurance operation includes CRC Insurance Services and AmRisc LLP, which make up a national platform for wholesale property and casualty insurance placements. BB&T Insurance consistently earns Greenwich Excellence customer satisfaction awards for large corporate and middle-market insurance brokerage in the U.S.
About BB&T
BB&T is one of the largest financial services holding companies in the U.S. with $174.6 billion in assets and market capitalization of $17.5 billion as of Dec. 31, 2011. Based in Winston-Salem, N.C., the company operates approximately 1,800 financial centers in 12 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by J.D. Power and Associates, the U.S. Small Business Administration, Greenwich Associates and others. More information about BB&T and its full line of products and services is available at www.BBT.com.