Though Wells Fargo Insurance Services USA Inc. represents only about 2% of revenue for its parent company, analysts say the commercial insurance brokerage is crucial to an overall diversification strategy for San Francisco-based banking firm Wells Fargo & Co.

“This is one of the businesses (Wells Fargo & Co. likes), because it does diversify some of their revenue line items,” said Chris Mutascio, Baltimore-based managing director with Keefe, Bruyette & Woods Inc. “I would not be surprised if indeed you see some acquisitions over time.”

Chicago-based Wells Fargo Insurance Services reported brokerage revenue decreased 3.2% last year to $1.58 billion, remaining the world's fifth-largest brokerage in Business Insurance's 2013 rankings.

Laura Schupbach, executive vice president and head of Wells Fargo's insurance unit, said revenue fell a bit after the brokerage sold pieces of its business over the past couple of years. Irving, Texas-based HealthSmart Holdings Inc. closed last month on the acquisition of Wells Fargo's disability management unit, and HealthSmart bought Wells Fargo's workers compensation third-party administration business in 2011.

Those divestures follow Wells Fargo's 2011 sale of San Francisco-based American E&S Insurance Brokers Inc. to R-T Specialty L.L.C., a unit of Chicago-based Ryan Specialty Group L.L.C.

Ms. Schupbach said the sales are part of a strategy to focus on organic insurance brokerage growth by cross-selling services to clients in other Wells Fargo units.

The brokerage also has worked to expand its risk management expertise for insurance clients, such as establishing a health and productivity national practice early this year and by investing in increased international risk management talent and technology.

“What we've been trying to do is really add world-class resources so that our sales and service teams have access to a really strong stable of national resources expertise,” Ms. Schupbach said.

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Kevin Kenny, executive vice president and head of Wells Fargo's insurance brokerage, said Wells Fargo is looking to aid clients dealing with risk volatility in the aftermath of the Great Recession and catastrophes such as Superstorm Sandy.

“With the expertise that we can draw upon again from our commercial and our corporate banking partners, we're asked to bring a different perspective that wraps finance, treasury and risk management into one conversation,” Mr. Kenny said. “So, we're getting well past insurance now, and we find risk managers engaging us (about the) total cost of risk.”

Marty Mosby, managing director with New York-based investment firm Guggenheim Securities L.L.C., said the strategy is part of a push to make the company a one-stop shop for clients across its units. “What they're really trying ... to do is make sure that they can provide a convenient, efficient platform that can give commercial and retail customers all the different products that they need to have.”

KBW's Mr. Mutascio said the brokerage business has helped bolster Wells Fargo & Co.'s overall financial performance as the banking sector copes with lackluster interest rates.

“They really need short-term rates to rise to help their margins,” Mr. Mutascio said of the finance sector. “So these banks have been developing, improving, expanding, buying ... fee-income line items that would help diversify away from net interest income.”

Though Wells Fargo has exited parts of the brokerage business that don't align with its strategy, Mr. Mutascio said he believes it could look at acquiring insurance-related businesses if it finds companies that would make a good fit.

“I would look for them to perhaps add some pieces of the puzzle or some scale over time if the price is right,” he said.

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Guggenheim's Mr. Mosby said Wells Fargo also could look to partner with other firms on parts of its brokerage business that don't fit with its core competencies.

“It's a business that they would be continuing to develop and evolve in the best way to serve their customers,” he said.

Ms. Schupbach said Wells Fargo has not made any acquisitions for at least 18 months and said the brokerage is not actively looking for deals. However, she said the broker could consider a purchase if it found a business with complementary strategies, talent and products.

In the meantime, Mr. Kenny said Wells Fargo will continue to push for controlled growth among its insurance clients.”We're very confident, but very disciplined in the way we're approaching the business,” he said.