USI Holdings Corporation is selling its San Antonio, Texas, wholesale insurance operation to CRC Insurance Services Inc., a wholesale brokerage firm.
In an 8-K filing with the Securities and Exchange Commission yesterday, the Briarcliff Manor, N.Y.-based insurance brokerage firm said it completed its sale of Vista Insurance Partners Inc. to CRC on July 1, for $5 million.
CRC is a subsidiary of BB&T Corporation, a financial services company based in Winston-Salem, N.C.
Vista was acquired in its purchase of Summit Global Partners in February. USI said it sold Vista because it did not feel the operation fit in with its long-term strategy.
The firm also revealed, in the same filing, that on June 30 it approved a plan to sell two operations==one a retail brokerage operation in El Dorado Hills, Calif., and the other an executive benefits operation in Woburn, Mass.
USI said it expects to record a loss on disposal estimated at $3 million and $4.5 million, respectively, before taxes, in the second quarter of 2005.
Combined, the operations to be sold are expected to have revenues of approximately $4 million and a net loss before income taxes of approximately $3 million in 2005.
In December, USI said it planned to dispose of three underperforming operations. In January, it sold its Ocala, Fla., office to insurance broker Brown & Brown.
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