24 February 2016
CGSC agrees on sale of North American business to BB&T Corporation
Cooper Gay Swett & Crawford Ltd. (“CGSC” or “the Group”), the global wholesale and reinsurance broker and underwriting management group, today announces that it has reached an agreement to sell CGSC North America Holdings Corporation (“Swett & Crawford”) to BB&T Corporation (“BB&T”) for $500m in cash, subject to regulatory approvals.
Swett & Crawford consists of leading US wholesale insurance brokerage operations, specialty managing general agencies including J.H. Blades & Co, and US reinsurance brokerage. The specialty managing general agent Creechurch International Underwriters, which operates in Canada, is not included in the sale.
Steve Hearn, Group CEO said: “I am very pleased that we have reached an agreement which provides an excellent home for Swett & Crawford. It is an exceptional business which has gone from strength to strength over recent years and which I am certain will continue to flourish under BB&T’s ownership. Following an exhaustive process which has generated significant interest from potential acquirers, BB&T have made a compelling offer which the Group board believe represents a transaction to the benefit of all parties including clients and employees of Swett & Crawford.”
“The proceeds of the sale will provide us with the resources to transform our business. It marks a tremendous milestone in the history of the Group, enabling us to build for the future with a fresh outlook. The impact of today’s announcement on the Group will be profound and we can now begin the next phase of our company’s development. We have the tools at our disposal for growth and a strategy that will set us apart. Together, this will enable us to build a business, centred on innovation, expertise and service, which is fit to challenge established markets and that will become a leading force in our chosen sectors.”
Perella Weinberg Partners LP served as financial advisor to CGSC. Davis Polk & Wardwell LLP served as legal advisor to CGSC on the transaction.
Cooper Gay Swett & Crawford (CGSC) is one of the largest independent global wholesale, underwriting management and reinsurance broker groups. Placing over $5 billion in premiums for clients in the London, U.S., and international insurance markets, CGSC provides insurance brokerage services to a diversified base of over 80,000 customers, including corporations, insurance and reinsurance companies, and retail insurance brokers. CGSC is headquartered in London and employs more than 1,500 staff across 60 offices worldwide. For more information visit www.cg-sc.com.
About Swett & Crawford
For 100 years, Swett & Crawford has delivered exceptional expertise and service to the commercial insurance marketplace. As a wholesale insurance broker, Swett & Crawford serves as a key intermediary between the independent insurance agents and the nation’s top insurance carriers. Swett & Crawford works with the insured’s retail insurance agent or broker to provide comprehensive, cost-effective commercial coverages and specialty programs for a wide variety of risks.
About BB&T Insurance Holdings
Raleigh, N.C.-based BB&T Insurance Holdings, the fifth largest insurance broker in the U.S. and the sixth largest internationally, is a wholly owned subsidiary of BB&T Corporation. BB&T Insurance Holdings operates more than 200 insurance agencies through subsidiaries BB&T Insurance Services, BB&T Insurance Services of California, McGriff, Seibels & Williams, CRC Insurance Services, Crump Life Insurance Services and AmRisc, LLC. Visit Insurance.BBT.com to learn more.
BB&T is one of the largest financial services holding companies in the U.S. with approximately $209.9 billion in assets and market capitalization of approximately $29.5 billion as of Dec. 31, 2015. Based in Winston-Salem, N.C., the company operates 2,139 financial centers in 15 states and Washington, D.C., and offers a full range of consumer and commercial banking, securities brokerage, asset management, mortgage and insurance products and services. A Fortune 500 company, BB&T is consistently recognized for outstanding client satisfaction by the U.S. Small Business Administration, Greenwich Associates and others. BB&T has also been named one of the World's Strongest Banks by Bloomberg Markets Magazine, one of the top three in the U.S. and in the top 15 globally. More information about BB&T and its full line of products and services is available at BBT.com.
Peter Rigby or Brian Norris
Tel +44 (0)20 7562 4444