金融英语相关阅读指导(六)

Citizens Financial Sells Three Insurance Agencies

　　Citizens Financial Group (Providence, RI) was a 'Top 25' bank insurance operation last year. That is not likely to be the case in the future.

　　With its announcement yesterday (March 1) that it was selling three insurance agencies to Hub International Ltd., a Chicago-based insurance brokerage, Citizens (assets: $155 billion) made clear that it sees little future in the full-line insurance brokerage business.

　　The agencies are Citizens Clair Insurance Group (Norristown, PA); Brewer & Lord (Norwell, MA); and Feitelberg Insurance (Fall River, MA). Collectively they have 19 offices in Pennsylvania, Massachusetts, and Rhode Island. Combined revenues were about $45 million last year.

　　The purchase price for the brokerages was $80 million (inclusive of tangible net worth), payable in cash on closing, as well as an earn-out based on future performance. The insurance agencies will continue to operate independently within the Hub International system.

　　The transaction was presented by the two companies more as a “strategic alliance” than an outright sale, promising “joint marketing efforts” that would bring a broader array of insurance products and services to Citizen's retail and commercial customers. Citizens Bank will continue to refer clients with insurance needs to the brokerages, presumably, even though they will now be owned by Hub and not Citizens.

　　In 2003, Citizens Financial, a wholly owned subsidiary of The Royal Bank of Scotland Group, purchased The Feitelberg Company, one of the largest insurance agencies in southeastern New England. With combined annual premiums of $325 million, the transaction made Citizens Bank, its operating bank, one of the largest bank/insurance brokerage operations in the United States. Citizens Clair and Brewer & Lord were acquired earlier, coming to Citizens as part of (larger) bank acquisitions.