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BB&T Corporation Message Board

  • usmarines0321 usmarines0321 Sep 14, 2007 2:26 PM Flag

    Banks & Insurance Brokerage.

    The unloading of B&A's Insurance Brokerage operation's:

    AP
    Hilb Rogal Buys BofA Insurance Agency
    Thursday September 13, 6:26 pm ET
    Hilb Rogal & Hobbs Buys Bank of America Insurance Agency for Undisclosed Terms


    RICHMOND, Va. (AP) -- Hilb Rogal & Hobbs Co., an insurance and risk management service provider, said Thursday it would purchase Banc of America Corporate Insurance Agency LLC to grow its business in the Northeast.
    Hilb Rogal did not disclose financial terms of the agreement.

    The transaction is expected to be complete during the fourth quarter and excludes the division's consumer insurance business. The insurance agency is a segment of Bank of America Corp.

    BACIA is headquartered in Cranford, N.J., and has 15 locations in seven states with revenue of $66.3 million last year. The agency's focus is on New Jersey, Pennsylvania, and New York, and it is expanding its business in New England, Hilb Rogal said.

    Shares of Hilb Rogal lost 5 cents to $43.84 Thursday. Bank of America shares rose 47 cents to $49.86.

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    • You don't owe any proof to any of these little girls! As you know every Marine is a grunt first, and a specialist full time. I am in great admiration of your son the Sniper, about as much as I am of a tunnel rat from the old days. Now the tunnels get a visit from the big ole 'bunker busters". The problem here these girls have is at the weeks end all they can do is whine at their better halfs, knowing on monday it's back to the grind. I STIL don't care if it's monday or saturday knowing JA is STIL at the helm and BBandT is STIL not sold or MOE, and JA rubs salt in their wounds by acquiring another Insurance firm.

      Semper Fi

    • I'm not "stil!" Once a Marine, always a Marine, it never ends. Proof...the 0321 stands for my MOS, one of my son's was a Scout Sniper and the other a Grunt 0311.

      Semper Fi!

    • parrisisslandnotparishilton parrisisslandnotparishilton Sep 28, 2007 2:42 PM Flag

      stil if you "are" a Marine (if you're a Marine you are always a Marine for you numbnuts out there) tell them something to prove it.

      if not I agree with the poster. Shut up and get a life

    • Hi stil

    • Lets see, P&C rates are predicted to fall 10-15% next year. Contingencies will be down as lower rates and the same amount of claims equal higher loss ratios and lower contingencies. The agencies that sold to banks have had their best producers retire,or they will be retiring soon. New producers want to go where they can eventually get a piece of the action and word is out that bankers and insurance brokers is like a marriage between a cat and a dog.

      I can tell you that I am an insurance broker and I HATE working for a bank. I am leaving at the first good opportunity. I don't feel like I am working for my client but instead for the guys who don't understand our business. I think the banks are foolish to try and hold on longer. BAC was smart to get out of insurance. Holding on in this "soft market" makes no sense. I think the bank needs to grow revenue organically through banking, or merge with another bank to get economies of scale and or effecencies of scale.

      Mark my words that you will lose your best brokers. Any good brokers would be better off moving to a firm that gives them some equity in their book. Good insurance agents cannot thrive long term in a bank owned insurance agency.

      • 1 Reply to longbrandin
      • JA has alluded to the change in strategy over the last two years. Even underperforming banks have a high premiums attached due to the healthy M&A market that has existed over the last few years. Also, BB&T wants to be close to a 50/50 split between fee income and interest income and insurance brokerage helps to fill that need. BofA may have a more profitable means of getting fee income and can shed off insurance brokerage without much impact on profits. BBT is working with American Coastal Insurance Co to actually underwrite insurance in certain markets of its footprint, so I think management is committed to expanding fee income through insurance activities.

    • BBT #2 bank re insurance written. Wells Fargo #1 and that's another reason they will combine sooner or lateer.
      Best regards,
      BT1On

      • 1 Reply to bowtieoneon
      • OK, let me understand all this. BB&T can no longer execute on its "buy the community bank," strategy because that pond has been fished out, what's left is too expensive, and their stock is no longer valuable enough to be used as currency. Now I see posted that the big push for insurance brokerages is dilutive and every other bank is starting to shed these assets and/or has quit buying them. And now another poster says that the reatil stock brokerage/capital markets platform has been nothing but a drag on earnings since inception. Combining that all together, and knowing the well understood amount of overhead their business model costs shareholders and the fact BB&T has always funded the bank with very high capital costs....what future is there? They can't grow, they cannot grow organically, how will they grow share price? Any takers on this?

    • BB&T has made a big push for a long time in buying insurance borkerage units in their footprint. They started the process when they could no longer cheaply buy small commmunity banks. If BofA is shedding their insurance business, it must not be a very attracitve holding. Any reasonable (i.e. logical and insightful thoughts - meaning STIL no need to respond) on how this impacts BB&T? Is their insurance unit dilutive? If insurance agencies are no longer attractive and neither are community banks, then how are they going to grow? Organically? (I think not).

    • Semper fi, they're coming home soon

 
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