BB&T Corp. plans to pay $570 million in cash to acquire the life and property and casualty insurance businesses of New Jersey-based Crump Group Inc., continuing the regional bank's recent expansion efforts.
Wade Reece, chairman and chief executive of BB&T Insurance, touted the deal as a chance for BB&T to become a major player in the high-margin life insurance distribution business as well as a way for it to grow its property and casualty operations.
"We've known and respected Crump for years and consider them an industry leader," Reece said.
BB&T projected the deal will add roughly $300 million in annual revenue to its insurance business. The transaction, subject to regulatory approval, is expected to close in the first quarter.
The company added the deal also will see John Howard, president and chief executive of Crump Group, join BB&T Insurance in a senior role.
The mid-Atlantic and Southeast regional bank has been on the hunt for growth in recent months, last year revealing it would continue pushing into Florida by acquiring struggling Florida lender BankAtlantic, the banking unit of BankAtlantic Bancorp Inc. (BBX), for roughly $301 million.
BB&T last month reported its fourth-quarter profit jumped 88% with help from stronger-than-expected revenue and improved credit conditions.