With an aim to further expand its insurance business, BB&T Corporation through its wholly owned subsidiary, BB&T Insurance Holdings, Inc. has acquired Regions Insurance Group. The financial terms of the transaction, announced in April, were not disclosed. Regions Insurance is a subsidiary of Regions Financial Corporation (RF - Free Report) .
Regions Insurance, providing property and casualty insurance and employee benefits products, serves more than 60,000 clients across the Southeast, Texas and Indiana through 30 offices.
The transaction further strengthens BB&T’s wholesale and retail insurance channels. The deal positions the company as the fifth largest insurance broker in the United States and globally.
With the closure of this deal, roughly 50% of insurance brokerage revenues will come from BB&T Insurance's retail network. Notably, in June, BB&T Insurance announced rebranding its BB&T Insurance Services retail broker as McGriff Insurance Services, which includes Regions Insurance.
Moreover, at the time of announcement of the transaction, BB&T had projected a rise in annual insurance brokerage revenues to roughly $2 billion. Further, as part of the deal, the president and CEO of Regions Insurance, Rick Ulmer as well as other associates will join BB&T Insurance’s senior leadership and other positions.
What Next?
With BB&T having a proven track record of successfully integrating acquired businesses, this insurance transaction will improve the company’s top-line growth. The bank plans to further expand its footprint in Texas and Pennsylvania through such opportunistic acquisitions, with the key aim to increase revenues from insurance operations.
Further, BB&T’s strong liquidity position will continue supporting its inorganic growth efforts.
This Zacks Rank #3 (Hold) stock has gained 2.9% so far this year against the industry’s decline of 5.3%.
Stocks Worth a Look
Better-ranked bank stocks include M&T Bank Corporation (MTB - Free Report) and East West Bancorp, Inc. (EWBC - Free Report) . Both these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Current-year earnings estimates of M&T Bank have been revised marginally upward in the last 60 days. Further, over the past year, the company’s shares have rallied 3.5%.
East West Bancorp’s current-year earnings estimates have moved 1.3% upward over the last 60 days. The company’s shares have gained 9.6% over the past year.
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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.
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With an aim to further expand its insurance business, BB&T Corporation through its wholly owned subsidiary, BB&T Insurance Holdings, Inc. has acquired Regions Insurance Group. The financial terms of the transaction, announced in April, were not disclosed. Regions Insurance is a subsidiary of Regions Financial Corporation (RF - Free Report) .
Regions Insurance, providing property and casualty insurance and employee benefits products, serves more than 60,000 clients across the Southeast, Texas and Indiana through 30 offices.
The transaction further strengthens BB&T’s wholesale and retail insurance channels. The deal positions the company as the fifth largest insurance broker in the United States and globally.
With the closure of this deal, roughly 50% of insurance brokerage revenues will come from BB&T Insurance's retail network. Notably, in June, BB&T Insurance announced rebranding its BB&T Insurance Services retail broker as McGriff Insurance Services, which includes Regions Insurance.
Moreover, at the time of announcement of the transaction, BB&T had projected a rise in annual insurance brokerage revenues to roughly $2 billion. Further, as part of the deal, the president and CEO of Regions Insurance, Rick Ulmer as well as other associates will join BB&T Insurance’s senior leadership and other positions.
What Next?
With BB&T having a proven track record of successfully integrating acquired businesses, this insurance transaction will improve the company’s top-line growth. The bank plans to further expand its footprint in Texas and Pennsylvania through such opportunistic acquisitions, with the key aim to increase revenues from insurance operations.
Further, BB&T’s strong liquidity position will continue supporting its inorganic growth efforts.
This Zacks Rank #3 (Hold) stock has gained 2.9% so far this year against the industry’s decline of 5.3%.
Stocks Worth a Look
Better-ranked bank stocks include M&T Bank Corporation (MTB - Free Report) and East West Bancorp, Inc. (EWBC - Free Report) . Both these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Current-year earnings estimates of M&T Bank have been revised marginally upward in the last 60 days. Further, over the past year, the company’s shares have rallied 3.5%.
East West Bancorp’s current-year earnings estimates have moved 1.3% upward over the last 60 days. The company’s shares have gained 9.6% over the past year.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
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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