City Holding in Charleston, W.Va., has sold its insurance division to The Hilb Group, a broker based in Richmond, Va.
The financial terms were not announced, though City Holding the parent company of City National Bank said in a press release Monday that it will realize a one-time gain of $5.8 million from the sale in the first quarter.
The pressures of a "rapidly consolidating insurance industry" motivated City Holding to sell its insurance unit, the company said in the release.
"It became apparent to City's board of directors that either City's commitment to insurance would need to significantly expand, or that City faced the possibility that its position within the insurance business would slowly become irrelevant," the company said.
Under the agreement, The Hilb Group will maintain the insurance division's brand, leadership and West Virginia offices.
City Holding has assets of $3.4 billion and operates 82 banking offices in West Virginia, Virginia, Kentucky and Ohio, according to the Federal Deposit Insurance Corp.