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THE LATEST ORIGINATION Regional Lender Initiates Insurance Acquisition BB&T has moved to purchase a leading insurance company, and the bank is set to double its wholesale insurance business. T hrough its recent acquisition of property insurance company Crump Group Inc., BB&T Corporation has doubled its wholesale insurance business. Based in New Jersey, Crump is among the nation's leading providers of wholesale commercial insurance, as well as the largest independent wholesale distributor of life insurance in the U.S. BB&T will pay Crump an estimated $570 million in cash to purchase its life, property, and casualty insurance services. The transaction is anticipated to add around $300 million in annual revenue to BB&T's insurance division. The deal between the two companies has not cleared regulatory approval, though BB&T noted in an official statement that the acquisition is likely to close within the first quarter of 2012. Following the transaction, Crump will retain only its retirement services business, Ascensus. Commenting on the Crump buyout, BB&T's chairman and CEO, Kelly S. King, said, "As the largest independent wholesale life insurance distributor in the country, the Crump acquisition significantly expands and strengthens our insurance operations. The deal is a great strategic fit for BB&T, immediately increasing and diversifying our fee income while driving stronger revenues." Wade Reece, chairman and CEO of BB&T Insurance, added his statements, noting, "We've known and respected Crump for years and consider them an industry leader. This is an opportunity for BB&T to become a significant and strategic player in the high-growth, high- margin life insurance distribution business and expand our property and casualty business." Currently, BB&T's wholesale insurance operations encompass property and casualty broker CRC Insurance Services, managing general agent Southern Cross TAPCO Underwriters, and managing general underwriter AmRisc LLP. BB&T is the country's sixth largest insurance broker. Through the deal, BB&T will have the advantage of 23 Crump offices around the U.S., as well as the company's relationships with more than 100 life insurance entities. Crump's broad industry presence includes a network of more than 200,000 producers and institutional clients. Crump's president and CEO, John Howard, will join BB&T Insurance as a senior leader. Howard spoke out on the acquisition, saying, "BB&T and Crump share a strong commitment to our clients and employees as evidenced by our consistently high customer satisfaction scores, industry awards, and strong financial growth. We're excited about this partnership and look forward to bringing the wide range of Crump products and services, unique expertise, and our high-touch, caring approach to BB&T's clients." Chase Teams Up with Operation A s many as 100 wounded veterans and service members may receive homes free of charge, thanks to a new partner- ship between the mortgage lend- ing unit for JPMorgan Chase and nonprofit Operation Homefront. The financial institution will pair homes it currently owns with qualifying families the nonprofit serves, including active-duty, Guard or Reserve, and honorably discharged service members. Any veteran from any era is eligible to apply, as are surviving single spouses of service mem- bers killed-in-action and post-9/11 disabled veterans. "This is an incredible gift from Chase to our men and women in uniform," Jim Knotts, president and CEO of Operation Homefront, said in a statement. "We're proud to partner with Operation Homefront in awarding homes to members of the military and their families," Frank Bisignano, JPMorgan Chase chief administrative officer and CEO of mortgage banking, said in a statement. Brad Cooper, executive direc- tor of Joining Forces, a subunit within the office of First Lady Michelle Obama, called the program "exactly the type of wonderful, collaborative effort that the First Lady and Dr. [Jill] Biden hoped to see when they rolled out 'Joining Forces' last year – companies and organiza- tions coming together to better serve veterans, service members and their families." As part of the effort, Operation Homefront will also accept do- nated goods to furbish homes for veterans and service members. THE M REPORT | 37 Homefront The big bank initiates a nonprofit partnership that will provide homes for 100 eligible veterans. ORIGINATION SERVICING ANALYTICS SECONDARY MARKET