TD Insurance sheds U.S. operations

TD Bank has sold its U.S. insurance subsidiary to USI Insurance Services, a middle-market brokerage firm owned by Goldman Sachs Capital Partners, for an undisclosed amount.

TD Insurance Inc. is one of the largest bank-owned insurance agencies and brokerage firms in the United States, offering personal and commercial insurance, as well as employee benefits products and services. USI stated that the acquisition is expected to contribute $58.2 million in revenues to its operations on an annual basis.

“We will complement our mutual strengths for the benefit of clients, prospects and our great professionals, and together create a market leader with unique breadth and depth of resources,” says Mike Sicar, USI’s chairman, president and CEO.

The sale will not affect the Canadian operations of TD Insurance, TD Bank spokesperson Jennifer Morneau has said. Morneau told the Canadian Press that the U.S. business operates on a different model in which products are distributed through brokers. In Canada, the bank sells directly to customers.

“We’re making this change to ensure that we’re aligned to one single distribution model and that’s a key part of our long-term strategy,” she said.