Associated Banc-Corp Completes Sale of Associated Benefits & Risk Consulting to USI Insurance Services

Rhea-AI Summary

On June 30, 2020, Associated Banc-Corp (NYSE: ASB) announced the completion of the sale of Associated Benefits & Risk Consulting (ABRC) to USI Insurance Services. This transaction is expected to generate a pre-tax book gain of approximately $165 million for the second quarter of 2020. ABRC, a Midwest-based consulting firm with 400 employees, offers various insurance and consulting services. USI is a major player in the insurance brokerage sector, enhancing its service capabilities with the acquisition.

Positive

• The sale is projected to result in a pre-tax book gain of approximately $165 million.
• The transaction may strengthen Associated's financial position and streamline its focus on core banking operations.

Negative

• None.

GREEN BAY, Wis., June 30, 2020 /PRNewswire/ -- Associated Banc-Corp (NYSE: ASB) (Associated) announced today that it has closed the previously announced sale of Associated Benefits & Risk Consulting (ABRC) to USI Insurance Services LLC (USI).

Associated expects to record a second quarter 2020 pre-tax book gain of approximately $165 million in conjunction with the sale.

ABRC is a multi-line insurance agency and Midwest-based consulting firm with 400 employees, providing employee benefits, retirement plans, compliance, business insurance, risk management and individual insurance solutions.

USI is one of the largest insurance brokerage and consulting firms in the world, delivering property and casualty, employee benefits, personal risk, program and retirement solutions to large risk management clients, middle market companies, smaller firms and individuals. Headquartered in Valhalla, New York, USI connects over 8,000 industry-leading professionals from approximately 200 offices to serve clients' local, national and international needs.

ABOUT ASSOCIATED BANC-CORP
Associated Banc-Corp (NYSE: ASB) has total assets of $34 billion and is one of the top 50 publicly traded U.S. bank holding companies. Headquartered in Green Bay, Wisconsin, Associated is a leading Midwest banking franchise, offering a full range of financial products and services from more than 240 banking locations serving more than 120 communities throughout Wisconsin, Illinois and Minnesota, and commercial financial services in Indiana, Michigan, Missouri, Ohio and Texas. Associated Bank, N.A. is an Equal Housing Lender, Equal Opportunity Lender and Member FDIC. More information about Associated Banc-Corp is available at www.associatedbank.com.

FORWARD LOOKING STATEMENTS
Statements made in this press release which are not purely historical are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any statements regarding management's plans, objectives, or goals for future operations, products or services, and forecasts of its revenues, earnings, or other measures of performance.  Such forward-looking statements may be identified by the use of words such as "believe", "expect", "anticipate", "plan", "estimate", "should", "will", "intend", "outlook", "target", or similar expressions.  Forward-looking statements are based on current management expectations and, by their nature, are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements.  Factors which may cause actual results to differ materially from those contained in such forward-looking statements include those identified in the Company's most recent Form 10-K and subsequent SEC filings.  Such factors are incorporated herein by reference.

Investor Contact:
Brian Mathena, Senior Vice President, Director of Investor Relations, 920-491-7059

Media Contact:
Jennifer Kaminski, Vice President, Public Relations Manager, 920-491-7576

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SOURCE Associated Banc-Corp

FAQ

What was Associated Banc-Corp's recent acquisition announcement as of June 30, 2020?

Associated Banc-Corp announced the completion of the sale of Associated Benefits & Risk Consulting (ABRC) to USI Insurance Services.

How much gain is Associated Banc-Corp expecting from the sale of ABRC?

Associated Banc-Corp expects to record a pre-tax book gain of approximately $165 million from the sale.

What services did Associated Benefits & Risk Consulting provide before the sale?

ABRC provided employee benefits, retirement plans, compliance, business insurance, risk management, and individual insurance solutions.

Who acquired Associated Benefits & Risk Consulting?

USI Insurance Services acquired Associated Benefits & Risk Consulting.

What is the primary focus of Associated Banc-Corp following the sale?

The sale allows Associated Banc-Corp to streamline its focus on core banking operations.