Continuing with the aim of focusing on core operations, KeyCorp KEY is set to sell Key Insurance & Benefits Services, Inc. Notably, the unit was acquired as part of the First Niagara Financial Group merger in 2016.
Last week, KeyBank, the banking subsidiary of KeyCorp signed a deal to vend the unit to USI Insurance Services ("USI"), the New York insurance broker. The deal, awaiting certain regulatory approvals, is anticipated to close in second-quarter 2018. However, financial terms of the agreement remain undisclosed.
With a division headquartered at Buffalo, NY, Key Insurance & Benefits Services, Inc. works with 350 employees across eight offices in upstate New York, Pennsylvania and Connecticut.
Morgan Stanley & Co. LLC - a unit of Morgan Stanley MS
- is serving as the financial advisor to KeyBank.
"We want to thank our teammates at Key Insurance & Benefits Services, Inc. for their contribution to Key. Through this sale, we are highlighting our focus on delivering core banking services across our footprint. We believe that Key Insurance & Benefits Services, Inc. and USI represent complementary businesses without geographic overlap and a shared commitment to providing strong client service and product expertise," said E.J. Burke, co-president, Key Community Bank.
Shares of KeyCorp gained 4.3% over the last six months, underperforming the industry
's rally of 4.9%.
KeyCorp currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
BankUnited, Inc. BKU has been witnessing upward estimate revisions for the last 30 days. Further, the stock climbed more than 12% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Lakeland Financial Corporation LKFN has been witnessing upward estimate revisions for the last 90 days. Also, the company's shares have risen nearly 7.6% over the past year. It currently carries a Zacks Rank of 2.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor's Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KeyCorp (KEY): Free Stock Analysis Report BankUnited, Inc. (BKU): Free Stock Analysis Report Lakeland Financial Corporation (LKFN): Free Stock Analysis Report Morgan Stanley (MS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research