BancorpSouth is banking on the insurance side of its financial services business to further fatten up non-interest revenues.
To that end, Tupelo-based BancorpSouth subsidiary BancorpSouth Insurance Services has signed a definitive agreement to acquire The Securance Group, an independent property and casualty and life and health insurance agency headquartered in Brewton, Ala.
Neither price nor other financial terms of the transaction were disclosed. The deal is to close on July 2.
The acquisition expands BancorpSouth Insurance Services’ reach across Alabama. In addition to Brewton, Securance has offices in Montgomery and Troy. BancorpSouth Insurance Services currently services the Birmingham and Mobile markets.
BancorpSouth Chairman & CEO Aubrey Patterson said the acquisition reflects BancorpSouth’s long-term strategy to expand its insurance brokerage business. “The growth of our insurance business has been a key contributor to the expansion of our fee-based revenues,” he said in a press statement. “Insurance commission revenue accounted for nearly one-third of non-interest revenue for 2011, which, in turn, increased to a record 38.4 percent of total revenue for the year.”
With 26 offices and over 500 associates, BancorpSouth Insurance Services ranks as the nation’s 26th largest insurance firm, according to rankings set by the publication Business Insurance.
Yank Lovelace, president & CEO of Securance, said the arrangement will enable the firm to bring new resources to clients, “while complementing our agency’s growth and development.”