Summary
Wells Fargo & Company (WFC) has announced the sale of its Wells Fargo Insurance Services USA (WFIS) division to USI Insurance Services, with the transaction closing on December 4, 2017. This divestiture includes WFIS's core insurance brokerage and consulting, employee benefits, and property & casualty operations, as well as specialized business lines such as Safehold Special Risk and Small Business Insurance. The terms of the sale were not publicly disclosed. The disposal of WFIS is a significant strategic move for Wells Fargo, allowing it to focus on its core banking and financial services operations.
Key Highlights
- 1Wells Fargo completed the sale of its insurance division, Wells Fargo Insurance Services USA (WFIS), to USI Insurance Services.
- 2The acquisition closed on December 4, 2017.
- 3Key business lines divested include Insurance Brokerage and Consulting, Employee Benefits, and Property & Casualty national practices.
- 4Specialized business units such as Safehold Special Risk, Small Business Insurance, and others are also part of the sale.
- 5The transaction terms were not disclosed.
- 6Wells Fargo recorded a pre-tax gain of approximately $845 million from the sale.
- 7This gain is in addition to a previously recognized discrete tax benefit in Q2 2017 related to the agreement to sell WFIS.