Wells Fargo & Company is selling its commercial insurance business to USI Insurance Services.
Specifically, USI will acquire Wells Fargo Insurance Services USA (WFIS) , which includes its Insurance Brokerage and Consulting, Employee Benefits and Property & Casualty national practices, along with Safehold Special Risk, Small Business Insurance, Student Insurance, Individual Health and Private Risk Management Insurance business lines.
Terms of the transaction, which is expected to close in the fourth quarter, were not disclosed.
“The sale of the commercial insurance business reinforces Wells Fargo’s focus on core banking products and services that best meet the needs of our customers and support strong financial returns for shareholders,” Perry Pelos, head of Wells Fargo Wholesale Banking, said. “By joining USI, an industry leader, the extremely talented team of WFIS insurance professionals will be able to continue to provide customers with products and services that best meet their insurance and risk management needs.”
WFIS provides small business, middle market, large corporate and high net worth clients with property and casualty, professional risk, employee benefits, private risk solutions and targeted insurance programs to specialized industries.
New York-based USI is one of the largest privately held insurance brokerage firms in the U.S., with more than 4,400 associates in over 140 offices.
“I’m confident USI is an excellent fit for our clients and our team members, and I’m excited about the opportunities we will have by bringing together our exceptionally strong and experienced teams,” Tim Prichard, head of Wells Fargo Insurance, said. “As we move through the sale and transition process, our clients will continue to receive excellent service and support.”
In conjunction with the sale of the commercial brokerage business, the Personal Insurance business will report into Consumer Lending. Wells Fargo’s Personal Insurance business provides customers with access to personal insurance products, such as auto, home, umbrella and renters insurance.
“Personal Insurance offers important protection for our customers’ homes and vehicles and gives them peace of mind,” Franklin Codel, head of Wells Fargo Consumer Lending, said. “We look forward to welcoming the Personal Insurance team and extending the valuable financial services capabilities they provide today to consumers.”