Insurance broker ups stake in managing general underwriter
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BB&T Insurance Holdings Inc., a subsidiary of BB&T Corp., will increase its stake in AmRisc L.P. to a majority while selling American Coastal Insurance Co. to certain members of the AmRisc management team, BB&T said Thursday.
Terms of the transaction, as well as the relative holdings in AmRisc, were not disclosed, said a spokesman for Willkie Farr & Gallagher L.L.P., which advised BB&T.
The management of AmRisc will retain a minority interest in the company while continuing to manage the business, a managing general underwriter with gross written premiums approaching $1 billion in 2014, according to a statement.
The sale of American Coastal eliminates BB&T's exposure to potential underwriting losses in the future, the company said in its statement.
The net effect of these two transactions is not expected to have a material impact on BB&T’s earnings or capital position, the company added.
BB&T Holdings is the world’s sixth-largest insurance broker, according to Business Insurance’s latest ranking.
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