Trustmark National Bank has agreed to sell its wholly owned subsidiary, Fisher Brown Bottrell Insurance, Inc. (FBBINSURANCE), to Marsh & McLennan for $345m in cash.
The acquisition aims to enable Trustmark to capitalise on the strong valuation premiums in the insurance brokerage sector.
FBBINSURANCE, one of the five largest bank-affiliated insurance brokerages in the nation and a significant agency in the Southeast, holds significant strategic value for Marsh & McLennan.
Trustmark National Bank has been in the insurance brokerage business for 25 years, with FBBINSURANCE growing from a single office in Jackson to ten offices across Mississippi, Alabama, and Florida.
The sale of FBBINSURANCE is expected to enhance Trustmark’s balance sheet, increase earnings, elevate profitability, and enhance capital.
Duane A. Dewey, President and CEO of Trustmark, stated, “Trustmark entered the insurance brokerage business 25 years ago. Since then, the agency has grown from a single office in Jackson to ten offices across Mississippi, Alabama, and Florida to become one of the largest bank-affiliated insurance brokerages in the country, and one of the largest in the Southeast. The FBBINSURANCE team has done a tremendous job of building a premier agency through their dedication to providing risk management solutions and unparalleled service to their clients. With the quality of our team and the strength Marsh McLennan Agency brings to bear, we look forward to working with them in a new capacity.”
Scott Woods, President of FBBINSURANCE, commented, “Trustmark has been an outstanding partner, supporting our growth and development. This next chapter in the life of the agency will serve as a catalyst for greater benefits for our clients and new opportunities for our associates as we gain enhanced access to MMA’s global resources. They are a world-class agency that is committed to their culture, customers, communities, and associates, and we look forward to joining their team.”
Peter Krause, President and CEO of Marsh McLennan Agency’s Southeast region, commented, “FBBINSURANCE’s strong regional presence, client-focused approach, and terrific leadership were very attractive as we looked for a high-quality agency to expand our presence in the Southeast. I look forward to working with Scott and the entire FBBINSURANCE team in delivering best-in-class solutions that address the growing risk management and benefit needs of businesses and individuals in the region.”
The transaction is anticipated to close by the end of the second quarter of 2024, subject to standard closing conditions and regulatory approval. Following the sale, current leadership and employees of FBBINSURANCE are expected to join Marsh McLennan Agency.
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