BB&T Agency Deal Fills a Product Gap: Company Is Looking to Acquire Further in Employee Benefits Area

By Reich-Hale, David | American Banker, January 16, 2002 | Go to article overview
Save to active project

BB&T Agency Deal Fills a Product Gap: Company Is Looking to Acquire Further in Employee Benefits Area


Reich-Hale, David, American Banker


The president of BB&T Insurance Services has a message for owners of employee benefits agencies in areas where his company already has a property and casualty agency.

"We're looking to continue buying; we're not done," said Wade Reece, president of the insurance unit of $70.3 billion-asset BB&T Corp. of Winston-Salem, N.C. His latest employee benefits agency acquisition was the deal announced Monday for Professional Benefits Management Inc. in Greensboro, N.C., which is to cross-sell with BB&T Poole Insurance, a property and casualty agency in Greensboro that BB&T bought in the mid-1990s. Terms of the deal, which is expected to close in February, were not disclosed.

"This is classically what we've done and what we'll continue doing," Mr. Reece said. "By buying Professional Benefits Management, we'll be able to round out our insurance offerings in the Greensboro area."

About 65% of BB&T Insurance Services' revenues come from property and casualty insurance and 70% of this from commercial customers. So, Mr. Reece said, employee benefits is a natural addition.

"We're dealing with business clients most of the time, and any commercial client we visit wants to talk about group health, disability, COBRA, and other employee benefits insurance lines," Mr. Reece said. "Of course we want to talk to them about getting all their insurance from us."

Of the 69 agencies BB&T already owns, about one-third have employee benefits capabilities, Mr. Reece said. Those that do not are getting matched up with employee benefits specialists.

Last month BB&T closed a deal for O'Neal & Hinson Insurance Services in Macon, Ga. BB&T had bought a property and casualty agency in Macon three years before. BB&T also bought employee benefits agencies last year after buying property and casualty agencies in Martinsville and Roanoke, Va. Each employee benefits agency has linked up with the local property and casualty agency to cross-sell.

"There are still a lot of places we can expand into by buying employee benefits agencies," Mr. Reece said. He declined to name sites.

Craig Whitehead, a senior consultant at Milliman USA in Chicago, said BB&T has a clear strategy to build its employee benefits business.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

BB&T Agency Deal Fills a Product Gap: Company Is Looking to Acquire Further in Employee Benefits Area
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?