Univest Insurance Inc. in Lansdale, Pa., has bid to extend its presence in the counties encircling Philadelphia to the north and west with its third agency deal in five years.
The parent Univest Corp. of Pennsylvania in Souderton announced Tuesday that it had an agreement for its insurance unit to buy the Donald K. Martin & Co. agency in West Chester, Pa., expanding the unit’s reach into a new county.
“We continue to seek opportunities to grow organically and through acquisitions,” Martin Renninger, the chairman and chief executive officer of Univest Insurance, said in an interview Wednesday.
The agency offers a good cross-selling opportunity, he said. “Initially we expect to utilize our current commercial base, and in the future we will be able to provide other financial services solutions to customers” through the Martin agency, he added.
Univest’s latest agency deal would extend the reach of its full platform of insurance products for individuals and commercial clients into Chester County, west of Philadelphia, for the first time. The Martin agency specializes in property/casualty insurance for businesses.
Mr. Renninger said this is Univest’s first agency deal in three years and he will not rule out the possibility of further acquisitions.
Univest bought George Becker Associates Inc., in Doylestown, Pa., in January 2000 and Gum Insurance in December 2001. The banking company’s insurance unit sells property and casualty insurance, disability and group coverage, employee benefits, and identity theft policies.
Univest Insurance decided to buy Donald K. Martin & Co., Mr. Renninger said, because executives at Univest were familiar with the agency and believed it a good fit. “We look for a real good fit — how they treat their customers, the service they provide, and how they work in the community,” he said. Univest Insurance also thought Martin’s focus on insurance for nonprofit entities complemented its business.
Increasing Univest’s ability to offer insurance products to nonprofit organizations filled a gap in its platform of services, Mr. Renninger said.
The Univest National Bank subsidiary has 36 branch offices in Bucks and Montgomery counties north of Philadelphia.
Univest Insurance works with many carriers, including St. Paul Travelers, Penn National, The Hartford, and Zurich North American.
Mr. Renninger would not say how much revenue Univest expects the Martin agency to generate and declined to discuss long-term sales goals. “All I will say is that this is our third acquisition on the insurance side and we are pleased with the progress we are making,” he said.
He also declined to discuss the terms of the Martin deal.
When considering acquisitions, he said, Univest Insurance “looks at how the owner has grown his business, the reputation in the community, and the retention of accounts.”
Mr. Renninger said he does not expect the insurance unit to go outside the Philadelphia suburbs anytime soon. “We’ve been in Montgomery and Bucks County, and this is our first deal in Chester County,” he said. “Our mission really, and direction, is to concentrate on our current markets.”
