At a time when many U.S. insurers (especially life insurers) are struggling and vying for a piece of the government's Troubled Asset Relief Program money or looking to
divest assets, Wells Fargo & Co.'s (NYSE:WFC) insurance unit is going shopping for brokerages.
Wells Fargo Insurance Services Inc.
purchased Grady & Associates, a retail insurance broker in Las Vegas, last week, and according to a story in
American Banker, the insurance unit is in the process of acquiring several brokerages in the West.
"
H. David Wood, the executive vice president of insurance brokerage for the Western region at Wells Fargo Insurance Services ... plans to expand in
the West by 'making acquisitions where they make sense,' in addition to
recruiting customers and hiring advisers. 'In the West, the strategy is
to build out the insurance operations to create better synergies with
the bank and the customers in the region,' he said. 'Nevada is a big
piece of that.' "Wells Fargo Insurance Services
is already the fifth-largest insurance brokerage firm in the world and the largest bank-affiliated insurance brokerage firm in the U.S., according to its
Web site.
The brokerage sells property, casualty, benefits, international, personal lines and life products.
Wells Fargo is also in the process of integrating Wachovia at the moment, but Wood says there won't be much overlap with the insurance business.
Wells Fargo isn't the only insurer looking to pick up brokerages right now. Ameriprise Financial Inc. (NYSE:AMP) is also looking at possible acquisitions in retail distribution and asset management capabilities, according to
The Wall Street Journal.
- Maria Woehr
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