USI Insurance Services, a Valhalla-based insurance brokerage and consulting firm, announced this week that it will acquire Wells Fargo & Co.’s commercial insurance business, Wells Fargo Insurance Services USA.
Wells Fargo Insurance is based in Charlotte, North Carolina, and provides property and casualty, professional risk, employee benefits, private risk solutions and insurance programs to specialized industries.
“The sale of the commercial insurance business reinforces Wells Fargo’s focus on core banking products and services that best meet the needs of our customers and support strong financial returns for shareholders,” said Perry Pelos, head of Wells Fargo Wholesale Banking. “By joining USI, an industry leader, the extremely talented team of WFIS insurance professionals will be able to continue to provide customers with products and services that best meet their insurance and risk management needs.”
The deal follows the San Francisco-based bank’s fake account scandal that erupted last year.
Michael J. Sicard, chairman and CEO of USI said this is a “transformational transaction” for both USI and Wells Fargo Insurance.
“We are excited to join together with our new partners and create an exciting, new home for our existing and future team members who want to be a part of a fast growing, innovating industry leader,” he said.
Terms of the transaction, which is expected to close in the fourth quarter, were not disclosed.
USI has more than 4,400 employees operating in 140 offices. The company acquired more than 40 brokerage offices from Wells Fargo Insurance in 2014.
“I’m confident USI is an excellent fit for our clients and our team members, and I’m excited about the opportunities we will have by bringing together our exceptionally strong and experienced teams,” said Tim Prichard, head of Wells Fargo Insurance.
Jones Day and Simpson Thacher & Bartlett LLP are serving as legal advisers to USI.