We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Northwest Bancshares (NWBI) to Divest Insurance Business Unit
Read MoreHide Full Article
Northwest Bank, a subsidiary of Northwest Bancshares, Inc. (NWBI - Free Report) , has announced a deal to sell its insurance business unit — Northwest Insurance Services — to the insurance brokerage and consulting firm, USI Insurance Services. Financial terms of the transaction have not been disclosed yet.
The deal, expected to close early in the second quarter of 2021, is subject to customary closing conditions.
Notably, Northwest Insurance Services offers property and casualty, life, disability and long-term care insurance. Further, it provides group health, life and disability employee benefits.
The president and CEO of Northwest Bank, Ron Seiffert said, "We are very pleased to have reached a definitive agreement with USI. USI is a well-managed, national provider who combines industry-leading capabilities delivered through longstanding, passionate and committed local service teams. We share very similar experience philosophies and see this as an exciting partnership for our insurance associates and clients."
Per USI's Chairman and CEO, Michael J. Sicard, “We look forward to welcoming the talented professionals from Northwest Insurance Services to the USI family. By partnering together as ONE, we look forward to expanding our expertise throughout western Pennsylvania and western New York through the USI ONE Advantage, an interactive knowledge platform that integrates proprietary analytics, networked resources and enterprise planning to deliver truly customized solutions with material financial impact to clients."
This divestiture is part of Northwest Bancshares’s aim to remain focused on its core businesses and simplify the complex organization.
Over the past six months, shares of Northwest Bancshares have gained 48.9%, underperforming the industry ’s 59% rally.
There has been a rise in restructuring activities in the banking sector amid the coronavirus pandemic. Last month, Wells Fargo (WFC - Free Report) agreed to sell its Corporate Trust Services (CTS) business, to Computershare Limited. The transaction is likely to close in the first half of 2021. Additionally, HSBC Holdings (HSBC - Free Report) has entered into final talks to sell its unprofitable French retail bank to the U.S.-based private equity firm, Cerberus Capital Management.
Earlier, this January, Truist Financial Corporation (TFC - Free Report) agreed to sell its institutional 401(k) record keeping businesses to Ascensus and Empower Retirement.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Northwest Bancshares (NWBI) to Divest Insurance Business Unit
Northwest Bank, a subsidiary of Northwest Bancshares, Inc. (NWBI - Free Report) , has announced a deal to sell its insurance business unit — Northwest Insurance Services — to the insurance brokerage and consulting firm, USI Insurance Services. Financial terms of the transaction have not been disclosed yet.
The deal, expected to close early in the second quarter of 2021, is subject to customary closing conditions.
Notably, Northwest Insurance Services offers property and casualty, life, disability and long-term care insurance. Further, it provides group health, life and disability employee benefits.
The president and CEO of Northwest Bank, Ron Seiffert said, "We are very pleased to have reached a definitive agreement with USI. USI is a well-managed, national provider who combines industry-leading capabilities delivered through longstanding, passionate and committed local service teams. We share very similar experience philosophies and see this as an exciting partnership for our insurance associates and clients."
Per USI's Chairman and CEO, Michael J. Sicard, “We look forward to welcoming the talented professionals from Northwest Insurance Services to the USI family. By partnering together as ONE, we look forward to expanding our expertise throughout western Pennsylvania and western New York through the USI ONE Advantage, an interactive knowledge platform that integrates proprietary analytics, networked resources and enterprise planning to deliver truly customized solutions with material financial impact to clients."
This divestiture is part of Northwest Bancshares’s aim to remain focused on its core businesses and simplify the complex organization.
Over the past six months, shares of Northwest Bancshares have gained 48.9%, underperforming the industry ’s 59% rally.
Currently, the company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Similar Actions by Other Banks
There has been a rise in restructuring activities in the banking sector amid the coronavirus pandemic. Last month, Wells Fargo (WFC - Free Report) agreed to sell its Corporate Trust Services (CTS) business, to Computershare Limited. The transaction is likely to close in the first half of 2021. Additionally, HSBC Holdings (HSBC - Free Report) has entered into final talks to sell its unprofitable French retail bank to the U.S.-based private equity firm, Cerberus Capital Management.
Earlier, this January, Truist Financial Corporation (TFC - Free Report) agreed to sell its institutional 401(k) record keeping businesses to Ascensus and Empower Retirement.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>