BB&T Corporation (NYSE:BBT) Plans to Acquire Insurance Unit From Regions Financial Corp (NYSE:RF)


BB&T Corporation (NYSE:BBT) announced recently that it has signed an agreement to acquire a unit from the Regions Financial Corp (NYSE:RF) as part of the strategy to venture into the insurance industry. The Regions Insurance is one of the leading insurance broker company with over 60,000 customer base across various markets in the US including the Southeast, Indiana, and Texas. The deal is expected to close in the third-quarter of 2018 subject to the regulatory approvals and other related terms and conditions.

The contract will largely support BB&T’s wholesale and retail insurance networks. The company expects to generate additional revenue of about 2 billion annually from the insurance brokerage offerings. In addition, the deal will provide an opportunity for the firm to further expand its presence in the marketplace. BB&T will also rise in the ranks as the leading insurance broker in the region and globally.

BB&T is the fifth largest insurance broker in the US and operates over 200 branches across the region. The company previously spent more than $500 million to acquire Swett & Crawford in 2016 and another insurance unit in Crump Group Inc., in 2012. The Regions have accepted the transaction as part of the firm’s strategy to simplify and streamline its internal operations to bring down the overall operating cost.

BB&T will integrate its acquired entity into its own operations to enhance its growth and development programs. The president and CEO of the Regions Insurance together with other key associates will be joining the BB&T team to offer various expertise needed for the success of the new company. Additionally, Plans are underway for BB&T to further expand its operations in Pennsylvania, Texas and beyond.

According to BB&T, the joint venture will enable the company to increase its presence in Louisiana and Indiana as well as boost the insurance brokerage offerings in other states including the Alabama, Florida, Georgia, Mississippi, Arkansas, and much more. The plan comes at the time when the Regions Financial Corp is searching for ways to exit the insurance business.

This report is for information purposes only, and is neither a solicitation or recommendation to buy nor an offer to sell securities. Financials Trend is not-a-registered-investment-advisor. Financials Trend is not a broker-dealer. Information, opinions and analysis contained herein are based on sources believed to be reliable, but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. The opinions contained herein reflect our current judgment and are subject to change without notice. Financials Trend accepts no liability for any losses arising from an investor's reliance on the use of this material. Financials Trend sometimes gets compensated up to one hundred and fifty thousand dollars per month for featuring particular stocks. See site disclaimer for complete compensation. Financials Trend and its affiliates or officers currently hold no shares of these stocks. Financials Trend and its affiliates or officers will purchase and sell shares of common stock of these stocks, in the open market at any time without notice. Financials Trend will not update its purchases and sales of these stocks in any future postings on Financials Trend's websites. Certain information included herein is forward-looking within the context of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements concerning manufacturing, marketing, growth, and expansion. The words "may", "would," "will," "expect," "estimate," "anticipate," "believe," "intend," " project," and similar expressions and variations thereof are intended to identify for ward-looking statements. Such forward- looking information involves important risks and uncertainties that could affect actual results and cause them to differ materially from expectations expressed herein. *Financials Trend does not set price targets on securities. Never invest into a stock discussed on this web site or in this email alert unless you can afford to lose your entire investment.