USI Insurance Services, a brokerage and financial service firm based in Briarcliff Manor, N.Y., has agreed to acquire TD Insurance Inc., a wholly-owned U.S. subsidiary of TD Bank, N.A. The terms of the deal were not disclosed.
USI said the acquisition is expected to contribute $58.2 million in revenues to USI on an annual basis. TD Insurance Inc. is one of the largest bank-owned insurance agencies and brokerage firms in the U.S., offering property/casualty insurance and employee benefits. It has 20 office locations from Maine to Florida with most of those concentrated in the U.S. Northeast.
TD Bank, N.A. is a subsidiary of The Toronto-Dominion Bank of Toronto, Canada, a top-10 financial services company in North America. The companies said the sale will not affect the Canadian operations of TD Insurance.
The acquisition is expected to be completed by the end of September 2012. The deal is subject to, among other customary conditions, expiration or termination of the waiting period (and any extension thereof) under the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended.
USI spokesman Ed Bowler told Insurance Journal that the two companies first began their discussions for a deal in the spring of 2012 and that USI was attracted to TD Insurance’s “outstanding business reputation” in the United States. He said the current leadership team at TD U.S. insurance unit will have “significant leadership roles” within USI.
USI operates out of nearly 100 offices in 26 states. USI is a portfolio company of private equity firm, Goldman Sachs Capital Partners.