KeyCorp in Cleveland has agreed to sell its Key Insurance & Benefits Services unit to USI Insurance Services.
The $138 billion-asset company is selling the unit as part of an effort to focus on core banking services, E.J. Burke, co-president of Key Community Bank, said in a press release Thursday. A sale price was not disclosed.
KeyCorp had acquired the business as part of its 2016 merger with First Niagara Financial Group.
“We believe that Key Insurance & Benefits Services Inc. and USI represent complementary businesses without geographic overlap and a shared commitment to providing strong client service and product expertise," Burke said.
With a division headquarters in Buffalo, N.Y., Key Insurance has 350 employees working in eight offices in upstate New York, Pennsylvania and Connecticut.
USI in Valhalla, N.Y., is one of the largest privately held insurance brokerage firms in the U.S. and has more than 6,000 employees in 150 offices, according to the press release. The company has been an active acquirer, including buying Wells Fargo Insurance Services USA last year.
The deal is expected to close in the second quarter. Morgan Stanley is acting as financial adviser to KeyCorp.