BancorpSouth, Inc. (BXS) announced that its insurance service wing BancorpSouth Insurance Services, Inc. inked a definitive agreement to acquire the assets of GEM Insurance Agencies, LP. The company did not disclose any financial provisions of this deal.
The deal is expected to close by the end of 2013. According to the terms of the deal, upon closure, the current President of GEM Insurance Agencies, Ed Schreiber will head the operations of the merged entity. Further, BancorpSouth Insurance Services’ present office in Houston will shift to 3355 West Alabama Street in Houston, which is GEM Insurance Agencies’ existing office.
Based in Texas, GEM Insurance Agencies was founded in 1954 and operates as a subsidiary of Marsh & McLennan Companies, Inc. (MMC). GEM Insurance Agencies caters to a large diversified client base with a wide range of products that include property/casualty risks along with exposure in complex products liability/professional liability. At present, the company’s annual revenue stands at around $9 million.
According to BancorpSouth, the acquisition will pave the way for a strong footprint in a growing market. Further, upon closure, the merged operations are expected to generate total annual revenue of around $11 million. Also, the company’s brokerage business is expected to benefit from GEM Insurance Agencies’ core property/casualty business along with growth in health insurance and voluntary employee benefit products.
BancorpSouth currently carries a Zacks Rank #3 (Hold). Some better-ranked Southeast Banks include First NBC Bank Holding Co. (NBCB) and Bank of Kentucky Financial Corp. (BKYF), carrying a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2 (Buy), respectively.