KeyCorp (KEY) Vends Key Insurance & Benefits Services To USI
Zacks Investment Research | Apr 01, 2018 09:16PM ET
Continuing with the aim of focusing on core operations, KeyCorp (NYSE:KEY) is set to sell Key Insurance & Benefits Services, Inc. Notably, the unit was acquired as part of the First Niagara Financial Group merger in 2016.
Last week, KeyBank, the banking subsidiary of KeyCorp signed a deal to vend the unit to USI Insurance Services ("USI"), the New York insurance broker. The deal, awaiting certain regulatory approvals, is anticipated to close in second-quarter 2018. However, financial terms of the agreement remain undisclosed.
With a division headquartered at Buffalo, NY, Key Insurance & Benefits Services, Inc. works with 350 employees across eight offices in upstate New York, Pennsylvania and Connecticut.
Morgan Stanley & Co. LLC — a unit of Morgan Stanley (NYSE:MS) — is serving as the financial advisor to KeyBank.
"We want to thank our teammates at Key Insurance & Benefits Services, Inc. for their contribution to Key. Through this sale, we are highlighting our focus on delivering core banking services across our footprint. We believe that Key Insurance & Benefits Services, Inc. and USI represent complementary businesses without geographic overlap and a shared commitment to providing strong client service and product expertise," said E.J. Burke, co-president, Key Community Bank.
Shares of KeyCorp gained 4.3% over the last six months, underperforming the Zacks Investment Research
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