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BOK Financial (BOKF) Disposes Insurance Business to USI Insurance
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BOK Financial Corporation (BOKF - Free Report) announced the sale of its risk management and employee benefits insurance brokerage and consulting business — BOK Financial Insurance, Inc. — to USI Insurance Services ("USI").
BOKF expects the transaction to result in a pre-tax gain of $28 million post-transaction-related expenses. The bank intends to use this gain to realize an equivalent loss on its available-for-sale securities portfolio and will rotate into higher-yielding securities. This will result in a net benefit to BOKF’s recurring earnings in the upcoming years.
Markedly, BOK Financial Insurance is a subsidiary of BOK Financial and a preeminent brokerage and consulting firm specializing in employee benefits and risk management programs. The company also has offices in Scottsdale and Oklahoma City. With the sale, BOK Financial Insurance's 45 employees will join USI.
BOK Financial’s management noted, "We are so pleased to transition the talented BOK Financial Insurance team to an environment where they can continue to deliver excellent service to our clients while having access to USI's expanded set of tools, resources and expertise".
Donald Woods, USI's regional CEO, remarked, "We are thrilled to welcome the clients and professionals from BOK Financial Insurance to the USI family. Together, we look forward to strengthening USI's property and casualty, personal risk and employee benefits expertise in support of our current and future clients through this exciting partnership."
BOKF shares have lost 12% over the past six months against the industry’s rise of 4.1%.
Cadence Bank (CADE - Free Report) closed the sale of its insurance business, Cadence Insurance, Inc., to Arthur J. Gallagher & Co. (AJG - Free Report) in a cash deal worth $904 million. The amount is subjected to certain customary purchase price adjustments.
The deal between CADE and AJG was announced on Oct 24, 2023, and was expected to have a positive impact on CADE’s earnings per share. The company projected that the transaction would result in an immediate net capital increase of approximately $620 million, and net cash proceeds would amount to around $650 million. Both estimations are made on an after-tax basis.
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BOK Financial (BOKF) Disposes Insurance Business to USI Insurance
BOK Financial Corporation (BOKF - Free Report) announced the sale of its risk management and employee benefits insurance brokerage and consulting business — BOK Financial Insurance, Inc. — to USI Insurance Services ("USI").
BOKF expects the transaction to result in a pre-tax gain of $28 million post-transaction-related expenses. The bank intends to use this gain to realize an equivalent loss on its available-for-sale securities portfolio and will rotate into higher-yielding securities. This will result in a net benefit to BOKF’s recurring earnings in the upcoming years.
Markedly, BOK Financial Insurance is a subsidiary of BOK Financial and a preeminent brokerage and consulting firm specializing in employee benefits and risk management programs. The company also has offices in Scottsdale and Oklahoma City. With the sale, BOK Financial Insurance's 45 employees will join USI.
BOK Financial’s management noted, "We are so pleased to transition the talented BOK Financial Insurance team to an environment where they can continue to deliver excellent service to our clients while having access to USI's expanded set of tools, resources and expertise".
Donald Woods, USI's regional CEO, remarked, "We are thrilled to welcome the clients and professionals from BOK Financial Insurance to the USI family. Together, we look forward to strengthening USI's property and casualty, personal risk and employee benefits expertise in support of our current and future clients through this exciting partnership."
BOKF shares have lost 12% over the past six months against the industry’s rise of 4.1%.
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BOKF presently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Cadence Bank (CADE - Free Report) closed the sale of its insurance business, Cadence Insurance, Inc., to Arthur J. Gallagher & Co. (AJG - Free Report) in a cash deal worth $904 million. The amount is subjected to certain customary purchase price adjustments.
The deal between CADE and AJG was announced on Oct 24, 2023, and was expected to have a positive impact on CADE’s earnings per share. The company projected that the transaction would result in an immediate net capital increase of approximately $620 million, and net cash proceeds would amount to around $650 million. Both estimations are made on an after-tax basis.