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Fifth Third Expands Insurance Division, To Buy R.G. McGraw
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In sync with its plan to expand insurance business, Fifth Third Insurance Agency Inc., an indirect, wholly owned subsidiary of Fifth Third Bancorp (FITB - Free Report) announced a deal to acquire R.G. McGraw Insurance Agency Inc., who provides property and casualty insurance as well as risk management analysis. The transaction is anticipated to close early next month. Notably, the financial terms of the deal were not disclosed.
The acquisition will enable Fifth Third to provide property and casualty insurance to its customers. This transaction is expected to help the company in achieving its target of strengthening fee income base as disclosed in Project North Star. The project targets to achieve ROTCE of 12-14% and ROA of 1.1-1.3% by the end of 2019.
Upon closure of the deal, the employees of R.G. McGraw will continue to work from its current offices. Also, the bank is working to come up with a co-branded title, which will help in identifying both the companies.
Michael McGraw, president and CEO, R.G. McGraw Insurance Agency said, “We are excited to join Fifth Third and continue to deliver quality service and coverage solutions to enhance risk management and asset protection for clients of our firm and Fifth Third.”
Our Viewpoint
We expect Fifth Third to be actively involved in acquisitions, going forward. This is in line with its Project North Star to bolster profits and operational excellence. Also, the gradual easing of pressure on margins due to the recent Fed interest rate hike has been encouraging for its financials. Moreover, the steady deployment of capital reflects its capital strength.
Fifth Third’s stock increased 39.2% over the last six months, outperforming the 30.0% gain for the Zacks categorized Banks - Major Regional industry.
Some other finance stocks carrying the same Zacks Rank include JPMorgan Chase & Co. (JPM - Free Report) , M&T Bank Corporation (MTB - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) .
JPMorgan has witnessed an upward earnings estimate revision of 1.4% for the current year in the past 60 days. Also, its share price is up 60.6%, over the last one year.
M&T Bank earnings estimates have been revised upward by 2.3% for the current year in the past 60 days. Also, its share price surged 63.8%, over the last one year.
PNC Financial recorded an upward earnings estimate revision of 4.2% for the current year in the past 60 days. Also, its share price has seen 57.6% rise over the last one year.
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Fifth Third Expands Insurance Division, To Buy R.G. McGraw
In sync with its plan to expand insurance business, Fifth Third Insurance Agency Inc., an indirect, wholly owned subsidiary of Fifth Third Bancorp (FITB - Free Report) announced a deal to acquire R.G. McGraw Insurance Agency Inc., who provides property and casualty insurance as well as risk management analysis. The transaction is anticipated to close early next month. Notably, the financial terms of the deal were not disclosed.
The acquisition will enable Fifth Third to provide property and casualty insurance to its customers. This transaction is expected to help the company in achieving its target of strengthening fee income base as disclosed in Project North Star. The project targets to achieve ROTCE of 12-14% and ROA of 1.1-1.3% by the end of 2019.
Upon closure of the deal, the employees of R.G. McGraw will continue to work from its current offices. Also, the bank is working to come up with a co-branded title, which will help in identifying both the companies.
Michael McGraw, president and CEO, R.G. McGraw Insurance Agency said, “We are excited to join Fifth Third and continue to deliver quality service and coverage solutions to enhance risk management and asset protection for clients of our firm and Fifth Third.”
Our Viewpoint
We expect Fifth Third to be actively involved in acquisitions, going forward. This is in line with its Project North Star to bolster profits and operational excellence. Also, the gradual easing of pressure on margins due to the recent Fed interest rate hike has been encouraging for its financials. Moreover, the steady deployment of capital reflects its capital strength.
Fifth Third’s stock increased 39.2% over the last six months, outperforming the 30.0% gain for the Zacks categorized Banks - Major Regional industry.
Fifth Third currently carries a Zacks Rank #2 (Buy). You can the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some other finance stocks carrying the same Zacks Rank include JPMorgan Chase & Co. (JPM - Free Report) , M&T Bank Corporation (MTB - Free Report) and The PNC Financial Services Group, Inc. (PNC - Free Report) .
JPMorgan has witnessed an upward earnings estimate revision of 1.4% for the current year in the past 60 days. Also, its share price is up 60.6%, over the last one year.
M&T Bank earnings estimates have been revised upward by 2.3% for the current year in the past 60 days. Also, its share price surged 63.8%, over the last one year.
PNC Financial recorded an upward earnings estimate revision of 4.2% for the current year in the past 60 days. Also, its share price has seen 57.6% rise over the last one year.
A Full-Blown Technological Breakthrough in the Making
Zacks’ Aggressive Growth Strategist Brian Bolan explores autonomous cars in our latest Special Report, Driverless Cars: Your Roadmap to Mega-Profits Today. In addition to who will be selling them and how the auto industry will be impacted, Brian reveals 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>