(Updates with CEO comment in fourth paragraph.)
Feb. 3 (Bloomberg) -- BB&T Corp., the ninth-largest U.S. bank by deposits, agreed to buy insurance divisions of Crump Group Inc. for $570 million in cash to expand distribution of life coverage.
The deal is expected to add $300 million in annual revenue to the bank’s insurance operation, Winston-Salem, North Carolina-based BB&T said today in a statement. The agreement, which is expected to be completed this quarter, covers property- casualty and life operations and excludes Crump’s Ascensus retirement-services business, according to the statement.
BB&T Chief Executive Officer Kelly King has been bolstering the bank’s insurance brokerage as he seeks to build revenue not tied to lending operations. The bank struck deals last year to buy Liberty Benefit Insurance Services and Atlantic Risk Management Corp. to grow in California and the Baltimore area.
The deal for the units of Roseland, New Jersey-based Crump “is a great strategic fit for BB&T, immediately increasing and diversifying our fee income while driving stronger revenues,” King, 63, said in the statement. “As the largest independent wholesale life insurance distributor in the country, the Crump acquisition significantly expands and strengthens our insurance operations.”
--With assistance from Patrick Clark in New York. Editors: Dan Kraut, David Scheer
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