BB&T Insurance To Buy Regions Insurance; Terms Not Disclosed - Quick Facts

(RTTNews) - BB&T Corp. (BBT) said that BB&T Insurance Holdings, Inc. has agreed to acquire Regions Insurance Group subsidiary from Regions Financial Corp. (RF). Terms of the transaction, which is expected to close in the third quarter of 2018, were not disclosed.

Regions Insurance is an insurance broker serving more than 60,000 clients across the Southeast, Texas and Indiana. It offers property and casualty and employee benefits products to businesses through a retail network of insurance professionals.

BB&T Insurance Holdings, the fifth largest insurance broker in the U.S. and internationally, operates more than 200 offices through subsidiaries BB&T Insurance Services, BB&T Insurance Services of California, McGriff, Seibels & Williams, CRC Insurance Services, Crump Life Insurance Services and AmRisc, LLC.

BB&T noted that the acquisition of Regions Insurance will add incremental balance to BB&T's insurance business between its wholesale and retail insurance channels. Following this acquisition, BB&T Insurance's retail network will contribute almost half of its insurance brokerage revenue.

"Regions Insurance significantly adds to our retail insurance network providing us the opportunity to further build out our footprint in core BB&T markets across the Southeast. With this acquisition, BB&T increases the contribution from our insurance brokerage business to almost $2 billion in annual revenue and further affirms our commitment to growing the business," said BB&T's chairman and chief executive officer, Kelly King.

Separately, Regions Financial said that the capital generated from this transaction at the time of closing is expected to be used to repurchase shares of common stock, subject to review and non-objection by the Federal Reserve as part of the 2018 Comprehensive Capital Analysis and Review.