SAN FRANCISCO--(BUSINESS WIRE)--Wells Fargo & Company (NYSE:WFC) announced today it has entered into an agreement with USI Insurance Services to sell 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, which is expected to close in the fourth quarter, were not disclosed.
“The sale of the commercial insurance business reinforces Wells Fargo’s focus on core banking products and services that best meet the needs of our customers and support strong financial returns for shareholders,” said Perry Pelos, head of Wells Fargo Wholesale Banking. “By joining USI, an industry leader, the extremely talented team of WFIS insurance professionals will be able to continue to provide customers with products and services that best meet their insurance and risk management needs.”
WFIS provides small business, middle market, large corporate and high net worth clients with property and casualty, professional risk, employee benefits, private risk solutions and targeted insurance programs to specialized industries.
USI is headquartered in New York and is one of the largest privately held insurance brokerage firms in the U.S., with more than 4,400 associates in over 140 offices. In 2014, USI acquired more than 40 smaller brokerage offices from Wells Fargo Insurance.
“I’m confident USI is an excellent fit for our clients and our team members, and I’m excited about the opportunities we will have by bringing together our exceptionally strong and experienced teams,” said Tim Prichard, head of Wells Fargo Insurance. “As we move through the sale and transition process, our clients will continue to receive excellent service and support."
In conjunction with the sale of the commercial brokerage business, the Personal Insurance business will report into Consumer Lending to ensure it is well positioned to continue to serve retail customers. Wells Fargo’s Personal Insurance business provides customers with access to personal insurance products, such as auto, home, umbrella and renters insurance.
“Personal Insurance offers important protection for our customers' homes and vehicles and gives them peace of mind,” said Franklin Codel, head of Wells Fargo Consumer Lending. “We look forward to welcoming the Personal Insurance team and extending the valuable financial services capabilities they provide today to consumers."
Wells Fargo Securities, the company’s investment banking arm, served as exclusive financial advisor to Wells Fargo & Company in connection with the transaction. Financial details related to the transaction, including the sale’s expected gain to Wells Fargo, were not disclosed. WFIS’s annual operating results are not material to Wells Fargo. Completion of the transaction is subject to regulatory approvals and is anticipated to close in the fourth quarter.
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.
About USI Insurance Services
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.