BB&T has agreed to acquire wholesale insurance broker CGSC North America Holdings (Swett & Carwford) from Cooper Gay Swett & Crawford for $500m.
Swett & Crawford served the commercial insurance sector for over 100 years.
The transaction is expected to contribute more than $200m in annual revenue to BB&T Insurance. Through this acquisition, BB&T anticipates to achieve around $500m in goodwill and intangibles.
The transaction is anticipated to be completed in the first six months of this year, after receiving regulatory approvals.
The acquisition does not include Swett & Crawford’s non-US business, which accounts for less than 5% of the company’s total revenue.
BB&T chairman and CEO Kelly King said: "Swett & Crawford nicely enhances our insurance business and increases and diversifies our overall fee income profile.
"With its long history and broad offerings, Swett & Crawford is a great strategic fit for BB&T."
BB&T’s wholesale insurance operations consist of property and casualty broker and managing general agent CRC Insurance Services, Crump Life Insurance Services and managing general underwriter AmRisc.
Including its retail operations, BB&T Insurance is the fifth largest insurance broker in the US by revenue.
BB&T has around $209.9bn in assets and market capitalization of $29.5bn as of 31 December 2015.
The company operates 2,139 financial centers in 15 US states and Washington, D.C. It provides consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services.
Image: BB&T building in downtown Tampa, Florida. Photo: courtesy of Barbthebuilder.