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Associated Banc-Corp Signs Deal With Diversified Insurance

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Associated Banc-Corp’s (ASB - Free Report) subsidiary, Associated Benefits and Risk Consulting has agreed to acquire Diversified Insurance Solutions, one of the leading insurance brokers of Wisconsin. While the deal is expected to be completed by next month, its terms have not yet been disclosed.

Being a multi-line insurance consulting firm with nearly 400 employees, Associated Benefits and Risk Consulting is the 47th largest broker of U.S. business. It provides employee benefits, retirement plans, compliance, business insurance, risk management and individual insurance solutions.

Having similar business lines, the acquisition of Diversified Insurance will add a range of complementary services to Associated Benefits and Risk Consulting. In fact, it is expected that once the transaction is complete, Associated Benefits and Risk Consulting will be counted among the top 45 insurance brokers in the United States.

According to the deal, some of the key executives of Diversified Insurance will continue their leadership roles for some time.

Philip B. Flynn, president and CEO of Associated Banc-Corp said, “This well-known and established insurance firm adds strength to our Associated Benefits and Risk Consulting team. It also improves our ability to achieve greater scale in the Metro Milwaukee market and to further expand our Wisconsin employee benefits and property and casualty market position and capabilities.”

Moreover, the CEO of Diversified Insurance, Chris Lie said, “I believe our organizations possess a shared commitment to the customer experience. By joining forces with Associated, our team can provide additional services to our existing customers while continue support communities in south-eastern Wisconsin.”

This is the third acquisition announcement made by Associated Banc-Corp in six months. A few days ago, the company acquired Bank Mutual, which will likely be accretive to its earnings in 2019. Earlier in October 2017, it acquired Whitnell & Co., which is expected to be accretive to its 2018 earnings.

Associated Banc-Corp’s solid organic and inorganic growth and branch consolidation efforts are expected to enhance its long-term profitability.

Shares of the company have gained 14.8% in the last six months, underperforming 19.9% growth of the industry.



Currently, the stock carries a Zacks Rank #3 (Hold).

A few better-ranked stocks from the same space are Old Second Bancorp, Inc. (OSBC - Free Report) , Enterprise Financial Services Corporation (EFSC - Free Report) and First Interstate BancSystem, Inc. (FIBK - Free Report) .

Old Second Bancorp has witnessed an upward earnings estimate revision of 18% for 2018, over the last 30 days. Its share price has increased 24.9% in the last six months. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Enterprise Financial’s earnings estimates for the current year have been revised 13.1% upward over the past 30 days. Its shares have gained 26.3% in the last six months. It carries a Zacks Rank #2 (Buy).

First Interstate BancSystem also carries a Zacks Rank #2. Over the last 30 days, the company witnessed an upward earnings estimate revision of 4.9% for the current year. Its share price has increased 16.9% in the last six months.

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