Wholesale broker Crump will nearly double in size and enter into territory it only dreamed of a short while ago with the completion of its deal to acquire the wholesale brokerage operations of BISYS Commercial Insurance Services.
J.C. Flowers & Co. LLC, the private-equity firm that purchased Dallas-based Crump from insurance broker Marsh in 2005, said yesterday it has completed the deal, bringing the wholesale insurance unit of BISYS into the firm.
As part of the deal Crump acquired the life, commercial and retirement services divisions of the former Roseland, N.J.-based BISYS Group Inc.
Under the deal, New York-based Citi purchased BISYS and sold the wholesale unit of BISYS immediately to Flowers. The BISYS units will now operate under the name Crump Group Inc.
Earlier accounts put the value of the deal at around $800 million.
John Howard, president of BISYS Life Insurance Services, was named president and chief executive officer of Crump Group and will continue to lead the life services division on an interim basis.
Glenn Hargrove will continue to serve as president and CEO of Crump Insurance Services Inc. and will lead the newly combined commercial operations.
Bob Guillocheau will continue as president of the retirement division.
In an interview with National Underwriter, appearing online May 3, Mr. Hargrove said: “This is a huge deal for us. It’s a fabulous mix. There is little overlap and [the company] complements what we already do. This allows us all kinds of opportunity in the future.”
He said during the interview that he never envisioned the company would be able to make such growth in one shot.
The purchase will double the size of Crump on the property-casualty side of the business to about 1,000 employees. As a whole, the ranks of Crump will swell from 460 employees to 2,700, he said. The business amounts to around $4 billion in premium.
Crump said it is now the largest wholesale insurance distributor in the United States. It added that on a pro-forma consolidated basis, the firm generated more than $450 million in revenue during the past twelve months.