People’s United Financial’s (PBCT) banking subsidiary People's United Bank has signed an all cash deal worth $120 million to divest People's United Insurance Agency (“PUIA”) to AssuredPartners. The deal is expected to close in the fourth quarter of 2020.
The concerned unit operated as a full-service insurance brokerage and insurance firm through which People’s United provided commercial and personal along with employee benefit insurance solutions.
AssuredPartners acts as an independent insurance agency that acquires and invests in insurance brokerage businesses across the U.S. and the U.K. It offers property & casualty, risk management and personal insurance, in addition to employee benefits.
The agreed purchase price is a 3.7x multiple of last 12 months’ revenues. Notably, with this transaction, People's United seeks to free resources that otherwise would have been kept invested in PUIA.
Jack Barnes, chairman and chief executive officer of People's United Bank said "It also allows us to focus additional resources on delivering core banking products and services, and to further enhance digital offerings across our commercial, retail and wealth management businesses.”
Our Take
People’s United continues to benefit from a healthy business portfolio that has grown inorganically over time. Since 2016, the company has maintained its acquisition spree, fortifying footprint in various areas. Also, it has diversified its revenue sources, which are likely to keep supporting the bank’s financials.
However, persistent pressure on margins from low rates and escalating expenses might restrict its bottom-line growth in the near term.
Shares of People’s United have lost 12.7% over the past six months against the 4% rally of the industry.
Currently, People’s United carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amid coronavirus-induced economic slowdown, several financial firms are undertaking initiatives to focus on core businesses. In July, Hilltop Holdings Inc. (HTH - Free Report) concluded the sale of its wholly owned subsidiary — National Lloyds Corporation — to Align Financial Holdings, LLC.
In August-end, Midland States Bancorp, Inc. (MSBI - Free Report) divested the commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm based in New York. Also, CIT Group sold the trust and wealth advisory business to Sunflower Bank, N.A., a subsidiary of Denver, CO-based FirstSun Capital Bancorp.
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People’s United Financial’s (PBCT) banking subsidiary People's United Bank has signed an all cash deal worth $120 million to divest People's United Insurance Agency (“PUIA”) to AssuredPartners. The deal is expected to close in the fourth quarter of 2020.
The concerned unit operated as a full-service insurance brokerage and insurance firm through which People’s United provided commercial and personal along with employee benefit insurance solutions.
AssuredPartners acts as an independent insurance agency that acquires and invests in insurance brokerage businesses across the U.S. and the U.K. It offers property & casualty, risk management and personal insurance, in addition to employee benefits.
The agreed purchase price is a 3.7x multiple of last 12 months’ revenues. Notably, with this transaction, People's United seeks to free resources that otherwise would have been kept invested in PUIA.
Jack Barnes, chairman and chief executive officer of People's United Bank said "It also allows us to focus additional resources on delivering core banking products and services, and to further enhance digital offerings across our commercial, retail and wealth management businesses.”
Our Take
People’s United continues to benefit from a healthy business portfolio that has grown inorganically over time. Since 2016, the company has maintained its acquisition spree, fortifying footprint in various areas. Also, it has diversified its revenue sources, which are likely to keep supporting the bank’s financials.
However, persistent pressure on margins from low rates and escalating expenses might restrict its bottom-line growth in the near term.
Shares of People’s United have lost 12.7% over the past six months against the 4% rally of the industry.
Currently, People’s United carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amid coronavirus-induced economic slowdown, several financial firms are undertaking initiatives to focus on core businesses. In July, Hilltop Holdings Inc. (HTH - Free Report) concluded the sale of its wholly owned subsidiary — National Lloyds Corporation — to Align Financial Holdings, LLC.
In August-end, Midland States Bancorp, Inc. (MSBI - Free Report) divested the commercial FHA origination platform to Dwight Capital, a nationwide mortgage banking firm based in New York. Also, CIT Group sold the trust and wealth advisory business to Sunflower Bank, N.A., a subsidiary of Denver, CO-based FirstSun Capital Bancorp.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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