Magazine article American Banker

M&T's Agency Deal Bolsters It in Middle Atlantic

Magazine article American Banker

M&T's Agency Deal Bolsters It in Middle Atlantic

Article excerpt

M&T Bank Corp.'s purchase of a Maryland agency last week moved its insurance operation for the first time into the Middle Atlantic region it entered with a big bank deal in 2003, and it may have nearly doubled the unit's revenue.

The deal for Hess Egan Hagerty & L'Hommedieu Inc., a commercial insurance specialist in Chevy Chase, Md., fits M&T Insurance Agency Inc.'s focus on commercial insurance as well as the parent's expansion into Maryland, Virginia, and Washington, D.C., said John Rumschik, the unit's president and chief operating officer.

Mr. Rumschik declined to specify his unit's revenue or Hess Egan's, but he told American Banker last March that the property and casualty business was generating $10 million of annual revenue. And Hess Egan's annual revenue has been estimated at $5 million to $10 million. Mr. Rumschik also declined to discuss revenue goals.

M&T Bank Corp. expanded dramatically outside its upstate New York home region with its $3 billion purchase of Baltimore's Allfirst Financial Inc., then a unit of Allied Irish Banks PLC. Before the Hess Egan deal, M&T Insurance had agency operations only in Buffalo and Syracuse, N.Y.

"This is a significant acquisition in terms of the size of it," said James Campbell, an analyst at Reagan Consulting Inc. in Atlanta who has worked with M&T. "They're able to expand their insurance distribution through an expanded footprint. It's a key area they had been looking at. …

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