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Wachovia to Acquire Insurance Brokerage Firm, Palmer & Cay Palmer & Cay Gives Wachovia Insurance Services National Presence CHARLOTTE, N.C. -- Wachovia Corporation (NYSE: WB), the nation's fourth largest bank holding company, announced today that it has entered into a definitive agreement to acquire Palmer & Cay Inc., the 15th largest insurance brokerage and benefits consulting firm in the United States. The 137-year-old Savannah-based Palmer & Cay has 950 employees and operates 34 offices in the District of Columbia and 22 states, primarily on the East Coast, and in the Midwest and Southwest. Wachovia's insurance division, Wachovia Insurance Services, will have more than $400 million in annual revenues and approximately 1,800 employees following the completion of the acquisition, making it one of the top 10 insurance brokerage firms in the nation. "Wachovia is committed to becoming a major force in the insurance brokerage arena. The addition of Palmer & Cay will significantly enhance Wachovia's property and casualty and employee benefits capabilities while significantly enhancing our market coverage on the East Coast, and in the Midwest and Southwest," said Stanhope Kelly, senior executive vice president of Wachovia Corporation. "We believe this new combination will create one of the premiere insurance organizations in our industry." "While many of our competitors are shedding business lines and are focused on their internal issues, we are investing and growing our business and are focused entirely on the client," said Stewart McDowell, president and chief executive officer of Wachovia Insurance Services. "In today's environment, clients are seeking professional service firms that look new and different from the traditional mega-broker model. We believe that the combination of Wachovia Insurance Services and Palmer & Cay offers this service model to current and prospective clients." As part of the transaction, John E. Cay III, chairman and chief executive officer of Palmer & Cay, will become chairman of Wachovia Insurance Services. McDowell will continue serving as president and chief executive officer, and Karen J. Lehman, chief financial officer of Wachovia Insurance Services, will oversee the division's financial operations. "Wachovia Insurance Services and Palmer & Cay are the ideal cultural fit," said Cay. "Both organizations place a high value on client-focused services, technical expertise and industry specialization. We believe our combined firms will be viewed as an even greater resource to our clients." Wachovia Insurance Services and Palmer & Cay are recognized for their technical expertise and innovation in solving complex problems for commercial and individual clients. The combined entity will offer a comprehensive menu of insurance brokerage, employee benefits and risk management consulting services. Commercial clients will have access to industry and product specialists, as well as a broad array of health and welfare-consulting services, including non-qualified benefits plan administration, retirement plan and compensation consulting. At the same time, individual clients will have access to personal risk management resources involving the coordinated delivery of personal insurance, estate planning, and other life and health insurance products. Wachovia Securities advised Wachovia Corporation and Wachovia Insurance Services in this transaction. Stephens Inc. advised Palmer & Cay. The deal is expected to close in the second quarter. About Wachovia Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $493.3 billion, market capitalization of $83.5 billion and stockholders' equity of $47.3 billion at December 31, 2004. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve customers primarily in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, serves clients in 49 states and five Latin American countries. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through Wachovia.com. |
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