Trustmark in Jackson, Miss., is the latest bank to agree to sell its insurance agency.
The $18.7 billion-asset company said in a press release that it will sell Fisher Brown Bottrell Insurance to Marsh & McLennan Agency for $345 million in cash. The sale is expected to close in the second quarter.
The purchase price represents about 5.9 times the agency’s 2023 revenue and 28 times net income.
After-tax proceeds of $228 million could be used to reposition Trustmark’s balance sheet to increase earnings, elevate profitability and enhance capital.
The agency’s current leadership and employees are expected to join Marsh McLennan Agency.
Morgan Stanley, KPMG, Covington & Burling and Brunini, Grantham, Grower & Hewes advised Trustmark.