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Wells Fargo to divest commercial insurance business to USI Insurance

IBR Staff Writer Published 28 June 2017

Wells Fargo has agreed to divest its commercial insurance brokerage business to New York-based insurance broker USI Insurance Services for an undisclosed sum.

Dubbed Wells Fargo Insurance Services USA (WFIS), the to be divested business provides a range of services such as insurance brokerage and consulting, employee benefits and property & casualty national practices.

It also offers safehold special risk, small business insurance, individual health and private risk management insurance and student insurance.

Wells Fargo wholesale banking head Perry Pelos said the decision to divest WFIS will help the company focus on its core banking products and services to cater to the needs of its customers and to bring strong financial returns for shareholders.

Pelos added: “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.”

Wells Fargo has revealed that its personal insurance business will henceforth come under its Consumer Lending unit so that it is well placed like before to serve retail customers.

The Personal Insurance unit of Wells Fargo provides cover auto, home, umbrella and renters insurances among other personal insurance products.

For USI Insurance, the company’s chairman and CEO Michael J. Sicard says that the combination with WFIS through the transformational transaction will help it create a premier industry leader backed by an un-matched team.

Sicard added: “We call it the USI ONE Advantage, a disruptive combination of expertise and innovation.

“Together, we bring a full suite of distinctive property & casualty, employee benefit, personal risk and retirement solutions, to middle market, large corporate, small business and individuals.”

The transaction is expected to be completed in the fourth quarter subject to receipt of regulatory approvals.

Image: Wells Fargo corporate headquarters in San Francisco, California. Photo: courtesy of Laimerpramer/Wikipedia.org.