The Bottrell Agency To Become Commercial Part Of Trustmark
In the first purchase of a major Mississippi independent insurance agency by a bank, Trustmark National Bank has bought the 62-year-old Bottrell Agency. The independent insurance agency will merge into Trustmark Insurance Agency, Inc., a wholly owned subsidiary of Trustmark National Bank.
Richard G. Hickson, president and chief executive officer of Trustmark Corp. and W.E. "Ted" French, president of The Bottrell Agency, signed the deal.
"In light of the national financial services reform and today's changing competitive environment, we at The Bottrell Agency began looking at ways to take our business to the next level," said French. "Given our long-term relationship with Trustmark, our shared values and mutual commitment to customer service, we believe this is a perfect fit which offers great potential for our customers."
"For our part, we view this proposed merger as a way to further Trustmark's position as a premier financial services company by providing products and services to meet the insurance, surety bonding and risk management needs of our customers across the state," said Hickson.
According to French, earlier this year the Independent Insurance Agents of America announced its support of financial services reform, specifically allowing affiliations with financial companies such as banks.
"This served as a signal for our agency to take a leadership role and act to assure that our customers have access to services, options and competitive advantages by partnering with a premier institution such as Trustmark," French said. "Upon finalization and after assuring that all federal and state guidelines are met, we'll be able to offer our customers access to a full spectrum of financial services and products, further partnering with them to build and protect their business.
"As with anything new, there will be questions about what this means for customers," he continued. "Our commitment is to continue providing exemplary service and products which fit the needs and high standards of our customers."
The board of directors of both companies have approved the Letter of Intent, which is the first step of a process anticipated to take 90 to 120 days, including time for due diligence and regulatory application and approval.
Under the authority of the National Banking Act, Trustmark in 1997 established its insurance subsidiary which until now focused solely on annuity products. Trustmark's further entry into insurance as part of its overall mix of financial services is governed by criteria from both the Office of the Comptroller of the Currency and the Mississippi Department of Insurance.
"Today we begin the process of crossing the t's and dotting the i's to effectively blend The Bottrell Agency with Trustmark in order to conform to all applicable state and federal laws," Hickson said. "Increasingly, our customers turn to us to provide products to fit their overall financial needs. With the addition of The Bottrell Agency, we will now be able to service their insurance needs."
Trustmark Chief Financial Officer Gerard R. Host said, "The proposed merger will be accounted for as a tax-free exchange of stock. We are confident that this merger presents a good business decision on the part of both parties and anticipate a smooth application and approval process."