Cadence Bank to sell insurance business to Arthur J Gallagher for $904 mln (updated)

Cadence Bank

24/10/2023 14:53

(Updates shares in paragraph 6)
       Oct 24 (Reuters) - Cadence Bank  CADE.N  will sell its
insurance brokerage unit to Arthur J Gallagher  AJG.N  for $904
million to narrow its focus and redeploy capital to its core
banking business, the lender said on Tuesday.
    Banks have been retreating from secondary ventures to build
capital and shore up their core franchises, as high borrowing
costs and tough regulation threaten to upset growth.
    Illinois-based insurance brokerage Arthur J Gallagher said
the deal will help its property, casualty and employee benefits
presence in Texas and across several states in the Southeast.
    "The sale will allow us to focus on what we do best,"
Cadence Bank CEO Dan Rollins said in a statement. 
    A media report earlier this month said Truist Financial
 TFC.N  was also in talks to sell its insurance business for $10
billion.
    Cadence Bank's shares rose nearly 9% to $21.43.
    Its construction, real estate, manufacturing, healthcare,
professional services and high-net-worth personal lines
businesses will also get a boost, Arthur J Gallagher added. 

 (Reporting by Niket Nishant in Bengaluru; Editing by Shweta
Agarwal)
 ((Niket.Nishant@thomsonreuters.com;))