BancorpSouth (BXS) in Tupelo, Miss., is strengthening its insurance business in Texas.
The $12.9 billion-asset company said Wednesday that its BancorpSouth Insurance has agreed to buy GEM Insurance Agencies in Houston. The companies did not disclose the agreement's financial terms.
BancorpSouth expects its insurance unit's annual revenues to be about $11 million after the acquisition. BancorpSouth's existing Houston insurance office will be folded into GEM's office, and the combined operations will be led by GEM President Ed Schreiber.
The acquisition "gives us an opportunity to enhance our presence significantly and expand our platform in a high-growth market," BancorpSouth Chief Executive Dan Rollins said in a press a news release. "GEM's growth strategy, operating structure, and customer-based focus are similar to our operations in Houston and across our footprint."
BancorpSouth earned $23.8 million in insurance commissions in the third quarter, and $76.3 million in the first nine months of this year, according to its latest quarterly report. BancorpSouth also owns Gumtree Wholesale Insurance Brokers.