Cadence Bank, a leading regional bank in the Southeast, has recently closed the sale of its insurance operations, Cadence Insurance, Inc., to Arthur J. Gallagher & Co. The transaction, valued at $904 million in cash, is a significant move for Cadence Bank as it seeks to reinvest the capital into further growing its core banking business. The sale represents a recognition of the substantial value of the insurance business and highlights the leadership and commitment demonstrated by Cadence Insurance in serving clients and communities.
Transaction Details and Effective Date
The sale of Cadence Insurance, Inc. to Arthur J. Gallagher & Co. was completed at a purchase price of $904 million in cash, subject to customary purchase price adjustments. The transaction has become effective as of 11:59 p.m. CT today, solidifying the transition of ownership and responsibility to Gallagher.
Reinvesting in Core Banking Business
Cadence Bank’s decision to divest its insurance operations is driven by the intention to concentrate on and bolster its core banking operations. By reinvesting the substantial capital generated from the sale, the bank aims to strengthen its position and expand its presence in the regional banking industry. This strategic move aligns with Cadence Bank’s commitment to providing exceptional banking services and tailored financial solutions to its customers.
Recognizing the Value of the Insurance Business
The successful completion of the sale underlines the significant value attached to Cadence Insurance. Over the years, the insurance division has established itself as a trusted provider of various insurance services, including commercial and personal property & casualty, employee benefits, business solutions, and risk management. With 30 offices spread across eight southeastern states, Cadence Insurance has built a reputation for excellence and efficiency within the industry.
Acknowledging Cadence Insurance’s Leadership and Commitment
Cadence Bank extends its gratitude and appreciation to the leadership, management, and employees of Cadence Insurance for their exceptional dedication and commitment to clients and communities. Throughout its operations, Cadence Insurance has consistently upheld high standards, earning recognition as one of the Best Places to Work by various publications. This acknowledgment is a testament to the organization’s strong leadership and the positive working environment it cultivates.
Seamless Transition
As part of the sale, the executive leadership, management, and employees of Cadence Insurance have joined Gallagher, ensuring a seamless transition and the continuation of excellent service to clients. With its wealth of expertise and resources, Gallagher is well positioned to further enhance and expand the insurance business.
The sale of Cadence Insurance, Inc. by Cadence Bank to Arthur J. Gallagher & Co. represents a significant milestone for both organizations. With a transaction value of $904 million, Cadence Bank is now able to concentrate on its core banking operations while using the capital to strengthen its position in the regional banking sector. The successful sale validates the value and reputation of Cadence Insurance, showcasing the exceptional leadership and dedication of its employees. As Cadence Insurance becomes a part of Gallagher, clients can expect to receive continued excellent service and a smooth transition into a new phase of growth and success.