First Niagara Expanding New England Operations With the Acquisition of Connecticut Insurance Firm Pierson & Smith
April 14 2011 - 8:17AM
First Niagara Financial Group's (Nasdaq:FNFG) insurance subsidiary
has acquired Norwalk, Conn.-based insurance brokerage, consulting
and third party administration firm, Pierson & Smith (P&S).
This transaction is part of the company's plans for enhancing its
operations, workforce and products and services to benefit
customers in New England.
The multi-state bank and financial services company is entering
the Connecticut and Massachusetts markets with its pending
NewAlliance Bancshares, Inc. (NYSE:NAL) merger, which is expected
to close on April 15. Its insurance subsidiary, First Niagara Risk
Management (FNRM), serves customers throughout its expanding
geographic footprint in New York, Pennsylvania and New England.
First Niagara's insurance and benefits consulting revenues in
2010 exceeded $51 million.
"This transaction clearly demonstrates First Niagara's
commitment to its newest region and building upon its successful
foundation to serve the communities of Connecticut and
Massachusetts," New England Regional President David Ring said. "My
team looks forward to working in collaboration with our newest
insurance partners to provide our customers with tailored products
and services to meet their personal and business needs."
Bruce Rogers, President of Pierson & Smith and Executive
Vice Presidents Fred Butler and Matt Fair will remain with the firm
and will serve as First Niagara Risk Management Regional Directors
of Insurance. Kim McGillicuddy, who is currently Chief Operating
Officer, will stay-on and Michael Watts, Chairman and Chief
Executive Officer, will continue to work with clients and the firm
in a senior advisory role. P&S and its staff will remain in its
current location at 40 Richards Avenue as part of First
Niagara.
"This transaction provides Pierson & Smith's clients with
the broad and deep resources of First Niagara, while ensuring that
they continue to receive the direct and personal attention from our
professional staff with whom they have built strong relationships
over the years," Pierson President Bruce Rogers said. "At the same
time, we look forward to expanding our risk management and employee
benefit brokerage and consulting expertise to First Niagara's
growing base of banking customers in the state."
First Niagara selected P&S to jumpstart its strategic growth
initiatives in the region due to the firm's position of strength in
the insurance business and their local in-market expertise.
"We selected P&S as our flagship local agency because
they fit our culture of high-performing insurance agencies. They
provide us with the leadership and staff which will support our
business through organic growth and selective acquisition within
our footprint," First Niagara Risk Management Chief Executive
Officer Joseph Teresi said.
Terms of the acquisition, which closed on April 8, were not
disclosed.
First Niagara Risk Management's $43.9 million in 2009 brokerage
revenues generated by U.S.-based clients made it the nation's 50th
largest broker and the ninth-largest bank-owned insurance agency,
according to Business Insurance magazine. With the acquisition of
Pierson & Smith, Inc., FNRM will have over 410 employees and
more than 14 offices in three states. First Niagara Risk
Management has been recently named as part of an elite group of
independent insurance agencies around the United States
participating in the Independent Insurance Agents & Brokers of
America (IIABA or the Big "I") "Best Practices" Study
Group. Only 224 independent agencies out of 27,000 throughout
the U.S qualified for this honor.
About First Niagara
First Niagara Financial Group, Inc., through its wholly owned
subsidiary, First Niagara Bank, N.A., has more than $30 billion in
assets, $18 billion in deposits and 300 branches across Upstate New
York, Pennsylvania, Connecticut and Massachusetts. First
Niagara Bank, N.A. is a community-oriented bank providing financial
services to individuals, families and businesses. For more
information, visit www.fnfg.com.
Forward Looking Statements
This document may contain forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995 about First
Niagara, NewAlliance and the merger. There are several
factors – many beyond First Niagara's control – that could cause
actual results to differ significantly from expectations described
in the forward-looking statements. For a discussion of factors
that may cause actual results to differ from expectations, please
see First Niagara and NewAlliance's respective Annual Reports on
Form 10-K for the year ended December 31, 2010, filed with the
Securities and Exchange Commission and available on the SEC's
website at www.sec.gov. Forward-looking statements speak only
as of the date they are made, and we do not undertake any
obligation to update them to reflect changes that occur after that
date.
CONTACT: Lisa Winter
Public Relations and Corporate Communications
(716) 819-5920
Lisa.Winter@fnfg.com
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