Haven Bancorp of Westbury, N.Y., said it will acquire Century Insurance Agency, a property and casualty specialist in Centereach, N.Y., for $1.2 million.
Century originally approached Haven's CFS Bank about getting referrals from a supermarket branch, said Tom Seery, a CFS executive vice president.
Century has eight brokers and generated $6 million in premiums last year.
Haven, the $2.5 billion-asset holding company for CFS, expects the deal to close in the fourth quarter. No regulatory approvals are necessary, Haven said, and management will remain unchanged.
The bank plans to send referrals to Century's office, Mr. Seery said.
In addition the bank will let its own licensed employees sell products from Century, which has relationships with 12 insurers, he said.
CFS now has only a handful of employees licensed and selling life and disability insurance, but plans to have them in every branch, Mr. Seery said.
Philip S. Messina, Haven's chairman and chief executive officer, said in a prepared statement: "We envision an important contribution from the more complete package of services we will be able to provide our customers."