People’s United Bank, N.A. a subsidiary of People’s United Financial, Inc. (NASDAQ: PBCT) today announced that it has entered into a definitive agreement to sell People’s United Insurance Agency (PUIA) to AssuredPartners. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions.
PUIA is a full-service insurance brokerage and one of the leading insurance firms serving the Northeast. For more than 100 years, PUIA has provided commercial and personal, as well as employee benefit insurance solutions.
AssuredPartners, headquartered in Lake Mary, FL and founded in 2011, is an independent insurance agency that acquires and invests in insurance brokerage businesses across the U.S. and in the U.K. AssuredPartners is one of the fastest growing insurance brokers in the nation with locations across 34 states, and is ranked the 11th largest broker of U.S. business. The company offers property & casualty, risk management and personal insurance, in addition to employee benefits.
“This transaction allows People’s United to monetize its long-term investment in PUIA and simplify its operating model,” said Jack Barnes, Chairman and Chief Executive Officer of People’s United Bank. “It also allows us to focus additional resources on delivering core banking products and services, and to further enhance digital offerings across our commercial, retail and wealth management businesses. As part of AssuredPartners, PUIA and its customers will benefit from their strong client and service capabilities and extensive carrier access. Finally, I would like to thank our colleagues at PUIA for their meaningful contributions to People’s United over the years.”
Under the terms of the Agreement, the purchase price is $120 million in cash, reflecting a 3.7x multiple of LTM revenue. Morgan Stanley & Co. LLC served as financial advisor and Hodgson Russ LLP served as legal counsel to People’s United.
