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.
Global Aerospace Underwriting Managers Ltd. is the lead insurer for Air Canada, whose plane was severely damaged early Sunday when it landed in bad weather short of the runway at Halifax Stanfield International Airport, the underwriter confirmed Tuesday.