The acquisition by Wells Fargo & Company of Wachovia Corp., which secured Federal Reserve approval last week, puts the company on track to be the fourth-largest insurance broker in the United States, one consultant noted.
The deal–worth more than $15 billion at the time of its announcement, when Wells Fargo was trading at $35.16 a share on Oct. 2–would not only merge the pair's banking businesses but also bring together their substantial insurance brokerage operations.
This presents a "great opportunity" for Wells Fargo to expand its footprint and establish itself as not only the largest bank-owned insurance brokerage firm but also the fourth-largest U.S. insurance broker, surpassing Arthur J. Gallagher, according to Robert J. Lieblein, managing partner with Hales & Company in Harrisburg, Pa.
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