BB&T Insurance increases stake in leading managing general underwriter and divests insurance company
WINSTON-SALEM, N.C., April 1, 2015 /PRNewswire/ -- BB&T Insurance Holdings Inc., a subsidiary of BB&T Corporation (NYSE: BBT), announced today it has reached an agreement to significantly increase its partnership interest in AmRisc, LP (AmRisc). In a related agreement, BB&T Corporation agreed to sell American Coastal Insurance Company (AmCoastal) to certain members of the AmRisc management team.
Management of AmRisc will retain a minority interest in the company and continue to strategically grow and manage the business. AmRisc has grown into a leading managing general underwriter (MGU) with gross written premiums approaching $1 billion in 2014. As an MGU, AmRisc does not assume any underwriting risk and represents an attractive fee income business for BB&T that is highly complementary and strategically important to BB&T Insurance Holdings.
The sale of American Coastal Insurance Company eliminates BB&T's exposure to potential underwriting losses in the future. The net effect of these two transactions is not expected to have a material impact on BB&T's earnings or capital position. These transactions were included in BB&T's capital plan as part of the 2015 Comprehensive Capital Analysis and Review (CCAR). The Federal Reserve System accepted BB&T's 2015 CCAR submission and did not object to its proposed capital actions.
Deutsche Bank Securities Inc. served as financial advisor to BB&T. Willkie Farr & Gallagher LLP served as legal counsel to BB&T in this transaction. Willis Capital Markets & Advisory served as financial advisor to the AmRisc management team. Debevoise & Plimpton, LLP and Isaacks & Associates, Ltd. LLP, served as legal counsel to AmRisc in this transaction.
About BB&T Insurance Holdings
Raleigh, N.C.-based BB&T Insurance Holdings, the fifth largest insurance broker in the U.S. and the sixth largest internationally, is a wholly owned subsidiary of BB&T Corporation. BB&T Insurance Holdings operates more than 100 insurance agencies through subsidiaries BB&T Insurance Services, BB&T Insurance Services of California, and McGriff, Seibels & Williams. Visit http://Insurance.BBT.com to learn more.
About BB&T
BB&T is one of the largest financial services holding companies in the U.S. with $186.8 billion in assets and market capitalization of $28.0 billion, as of December 31, 2014. Based in Winston-Salem, N.C., the company operates 1,839 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 has been 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 bbt.com.
SOURCE BB&T Corporation
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