Frost Insurance Agency is stepping up expansion plans and considering acquisitions in Texas to supplement its recent deal for Sammons Insurance Group in Dallas.
Dick Evans, the chairman and chief executive officer of Cullen/Frost Bankers Inc., the parent of Frost National Bank in San Antonio, said in an interview Friday that the company is actively looking to expand the bank's insurance unit. "We announced publicly for the last couple of years that we were looking to expand in Dallas," he said. "It's always been a market of interest."
"We are happy to add Dallas to the list of cities we provide insurance services to," he said. The company already had a banking presence in the city.
Frost Insurance Agency announced Wednesday that it had bought the assets of Sammons Group, giving it access to the Dallas market for the first time. Sammons Group was a full-service, independent insurance agency that sold commercial property and casualty insurance, personal lines, life insurance, and employee benefits.
Mr. Evans said the deal fit its needs but grew out of an opportunity to buy that arose with the death of founder Charles D. Sammons in February.
Frost started its insurance business five years ago, he said.
Frost's insurance revenue last year was $28.6 million, putting it 32d in the rankings of banks with insurance businesses.
When Frost considers an acquisition, Mr. Evans said, it is very important that the target company "fit with our company culture." Frost has an agency operating out of Houston, he noted, and it may soon consider another acquisition in the region. Frost also has a banking presence in Houston.
He declined to give details of the agency search, saying only that Houston is a possibility and that "we are always looking."
Mr. Evans said the Sammons deal complemented the bank's business; the Dallas agency sells property and casualty coverage on the commercial side and offers employee benefits products - both attractive activities for Frost.
"With its strong performance history and client-focused approach, the Sammons Group is a great fit with our organization, reinforcing our commitment to building a first-class statewide insurance brokerage operation," Mr. Evans said. "The Sammons Group is a full-service, independent agency operating with over two decades of experience. They fit our culture, and we respect their people."
Asked about the competitive landscape, Mr. Evans said, "the state's full of" competitors. "This acquisition is another way for us to stand out," he said.
Mike Delabano, the Fort Worth region president for Frost Insurance Agency, said, "For more than two decades, Sammons Insurance Group has been consulting with Dallas clients to understand and manage risk in their businesses and personal affairs."
"Partnering with Sammons Group strengthens our capabilities to provide outstanding commercial and personal lines of insurance and personalized service in the Dallas market," he said.
Paul Vredenburg, a senior vice president at Marsh, Berry & Co. Inc., the financial services management consulting company in Concord, Ohio, that represented the Sammons family, said the deal made sense for Frost.
"It expands their insurance presence in the Dallas area, and it's a great platform to grow," he said.
Frost Insurance Agency sells a full range of property and casualty, group employee benefits, estate planning, and business succession and personal insurance products throughout Texas.
The Sammons Group deal was Frost's seventh in the last five years.
It also has bought Professional Insurance Agents Inc. with offices in Victoria, San Antonio, New Braunfels, and Refugio; Wayland Hancock Insurance Agency Inc. in Houston; Nieman Hanks Puryear and Nieman Hanks Puryear Benefits in Austin; AIS Insurance and Risk Management in Fort Worth; Victoria-based Jentsch Financial Group; and Brokers Insurance Designs in Fort Worth.
