) announced that its insurance service wing BancorpSouth
Insurance Services, Inc. inked a definitive agreement to acquire
the assets of GEM Insurance Agencies, LP. The company did not
disclose any financial provisions of this deal.
BANK OF KY FINL (BKYF): Free Stock Analysis
BANCORPSOUTH (BXS): Free Stock Analysis
MARSH &MCLENNAN (MMC): Free Stock Analysis
FIRST NBC BANK (NBCB): Free Stock Analysis
To read this article on Zacks.com click here.
The deal is expected to close by the end of 2013. According to
the terms of the deal, upon closure, the current President of GEM
Insurance Agencies, Ed Schreiber will head the operations of the
merged entity. Further, BancorpSouth Insurance Services' present
office in Houston will shift to 3355 West Alabama Street in
Houston, which is GEM Insurance Agencies' existing office.
Based in Texas, GEM Insurance Agencies was founded in 1954 and
operates as a subsidiary of
Marsh & McLennan Companies, Inc.
). GEM Insurance Agencies caters to a large diversified client
base with a wide range of products that include property/casualty
risks along with exposure in complex products
liability/professional liability. At present, the company's
annual revenue stands at around $9 million.
According to BancorpSouth, the acquisition will pave the way for
a strong footprint in a growing market. Further, upon closure,
the merged operations are expected to generate total annual
revenue of around $11 million. Also, the company's brokerage
business is expected to benefit from GEM Insurance Agencies' core
property/casualty business along with growth in health insurance
and voluntary employee benefit products.
BancorpSouth currently carries a Zacks Rank #3 (Hold). Some
better-ranked Southeast Banks include
First NBC Bank Holding Co.
Bank of Kentucky Financial Corp.
), carrying a Zacks Rank #1 (Strong Buy) and a Zacks Rank #2