Buy to boost Associated's services

Northwestern Financial Review, May 1-May 14, 2003

Associated Banc-Corp announced April 1 that it will acquire CFG Insurance Services, Inc., one of the largest insurance agencies in the Minneapolis/St. Paul area, saying the move will leverage the resources of both CFG and Associated Bank.

CFG, with more than 2,500 business insurance clients in the Twin Cities, boosts the growth of Associated's existing insurance group, Associated Insurance Management Group, Inc. (AIMG). The insurance agencies' revenues in 2002 were approximately $28 million, making it among the top 60 insurance agencies in the United States. The acquisition also leverages Associated's banking operations in the Twin Cities, providing the opportunity for a greatly expanded customer base.

Associated intends to preserve CFG's current management team and operating structure,while bringing a much wider range of Associated banking servicesto CFG's existing client base, Gallagher said. CFG's offerings, which will be available to expand and augment Associated's existing customer relationships, include:

* Medical and dental benefit plans, flexible spending accounts and related employee benefits

* Business insurance, including liability,workers' compensation, and property and casualty insurance

Human resources consulting services

Likewise, CFG customers will now have access to a wide range of products and services offered by Associated, including its full range of banking and wealth management services.

CFG will retain its name during a transition period, eventually coming under the Associated brand. Oldre will manage the combined company.

CFG is an independent, full lines agency based in Minnetonka, Minn., with approximately 115 employees. Working with insurance-licensed Associated Bank employees, the firm provides personal insurance lines, bank life insurance and annuities. AIMG's primary focus is on bank life insurance, personal lines and annuities.