Wells Fargo to buy Acordia

Rough Notes, May 2001

Adefinitive agreement has been reached for Wells Fargo & Company to purchase ACO Brokerage Holdings Corporation, parent company of national property/casualty agency Acordia, Inc. Subject to regulatory approval, the transaction will be completed during the second quarter of this year.

Wells Fargo has been in the insurance business since the 1920s. The company said the acquisition of Acordia is a key step in achieving its goal of having Wells Fargo's insurance, trust and brokerage businesses contribute 25% of its income. Acordia and Wells Fargo Insurance combined will have $630 million in revenue and 176 stores in 38 states, making it the largest bank-owned insurance agency in the country. Acordia has 3,860 team members including 780 agents, and Wells Fargo Insurance has 1,654 team members including 140 agents.

Acordia, based in Chicago, has more than 100 offices in North America and places more than $3.5 billion in premium in property, casualty, life, and benefits.