Old National Bancorp in Evansville, Ind., will exit the insurance business after selling those operations to Prime Risk Partners.
The $11.9 billion-asset company said in a regulatory filing that it will sell ONB Insurance Group for $93 million in cash in a deal that is expected to close in the second quarter. Certain employees of the insurance group shall receive a cash award and grant of membership interests in an affiliate of Prime Risk.
As part of the deal, Old National agreed to stay out of the U.S. insurance business for five years after the deal closes.
Old National, which completed its purchase of Anchor BanCorp on Sunday, also announced that its quarterly earnings rose 29% from a year earlier, to $27 million. Lower noninterest expense made up for a decrease in revenue.