Connecticut Bank to Scoop Up State's largest Independent Agency
Bridgeport, CT-based People's Bank announced over the weekend that it wants to broaden its financial services and will enter the insurance market with the acquisition of R.C. Knox and Company, Inc., of Hartford. The transaction is expected to be finalized June 30, 1998.
The new People's subsidiary will continue to operate as R.C. Knox and Company, Inc., from its existing offices and will retain the same management team. The agency offers a full range of commercial and personal property/casualty, life and employee benefits insurance products, as well as bonding, risk management and pension services.
"We are delighted with this alliance and the opportunities it creates," says David E.A. Carson, chairman and CEO of People's. "R.C. Knox is one of the oldest and most highly respected insurance agencies in the state. With this agreement, we are completing a major step in providing one-stop financial services convenience for our customers and preparing the bank for the new millennium."
"This strategic combination of Connecticut's largest independent insurance agency with Connecticut's largest independent banking and financial services company will result in an entity that will be unparalleled in the region," says Norman C. Kayser, CPCU, ARM, chairman and CEO of R.C. Knox. "Both organizations have long and proud histories of serving client needs and supporting the regions they serve."
Carson, who was president and CEO of Middlesex Mutual Assurance Co. before joining People's in 1983, will serve as chairman of the subsidiary's board of directors. Kayser will serve as vice-chairman. John F. Byrnes, CPCU, will be Knox's president and CEO, while Harold A. Smullen Jr., CPCU, will be executive vice president and COO.
"It is an excellent match," says People's President James P. Biggs. "We were seeking a partner with exceptional expertise and broad-based experience. R.C. Knox is an established leader in the industry. Its customer focus and broad range of products will blend well with the bank's diversified financial services."
R.C. Knox wrote approximately $115 million in annual premium in 1997. It is the largest independent agency in Connecticut and for the past 10 years has been among the largest 100 agencies in the U.S. as reported by Business Insurance.
The acquisition of R.C. Knox is part of People's overall insurance initiative, which is being led by Barbara P. Johnson, senior vice president, Insurance Services. "The combined experience of banking and insurance professionals, underlaid by People's multi-faceted distribution system, will truly meet the financial needs of today's commercial and retail customer," she says.
Founded in 1893, R.C. Knox has 85 employees. The company will remain headquartered at Goodwin Square in Hartford and will retain the same personnel and philosophy. R.C. Knox is known throughout the Northeast for its expertise in commercial and personal property and casualty insurance, life, health and employee benefits, as well as bonding, risk management and pension services. People's was founded in 1842 and has approximately 3,700 employees. The bank was the first in Connecticut to sell Savings Bank Life Insurance and leads the state in SBLI sales.
When finalized, this will be the fourth acquisition completed by People's in the last six months, including the purchase of Norwich Financial Group, parent company of The Norwich Savings Society, with 16 branches in the southeastern part of the state, and the purchase of Olson Mobeck & Associates Inc., an asset management company located in Litchfield and Rocky Hill. People's Capital and Leasing Corp. was launched as the result of the acquisition of Independent Resources, a Litchfield-based equipment leasing firm.