By The Daily Journal
TUPELO – BancorpSouth Insurance Services, whose income has been a major contributor to BancorpSouth Bank’s overall fee income growth, will expand its Alabama operations next month.
BancorpSouth Insurance said Monday after the financial markets closed it had signed a definitive agreement to acquire the assets of The Securance Group Inc., an independent property and casualty and life and health insurance agency headquartered in Brewton, Ala.
Financial terms of the deal, which is expected to close July 2, were not disclosed.
Securance Group also operates offices in Montgomery and Troy.
The acquisition will complement BancorpSouth Insurance’s footprint in Alabama, which already includes the Birmingham and Mobile markets.
“This agreement to acquire the assets of Securance Group reflects our long-term strategy to expand our successful insurance brokerage business, already among the banking industry’s largest,” said BancorpSouth Chairman and CEO Aubrey Patterson.
Patterson said BancorpSouth’s insurance commission revenue accounted for nearly a third of BancorpSouth’s noninterest revenue last year, while noninterest revenue itself accounted for a record 38.4 percent of the bank’s total revenue.
James Threadgill, BancorpSouth’s vice chairman of financial services, said “While expanding our existing agency franchise, the pending Securance Group acquisition will also help solidify our Alabama market coverage by complementing our existing Mobile and Birmingham market areas.”
BancorpSouth Insurance Services ranks as the nation’s 26th largest insurance firm based on the latest rankings available for top insurance brokerage firms in America by Business Insurance. BancorpSouth Insurance Services operates some 26 offices, with more than 500 employees serving clients across the country.