Business

Winnipeg Free Press - PRINT EDITION

TD sells U.S. insurance division

By: Staff Writer

Posted: 08/25/2012 1:00 AM | Comments: 0

TORONTO Dominion Bank says a desire to concentrate on its Canadian operations and to have a single distribution model was behind the decision to sell its U.S. insurance business.

Financial terms of the sale to USI Insurance Services, announced earlier this week, were not disclosed.

Bank spokeswoman Jennifer Morneau said the U.S. business operates on a different model in which products are distributed through brokers, who get a cut of the proceeds. In Canada, the bank operates under a product-distribution model in which it deals directly with the customer.

"Basically, this single-distribution model will allow TD Insurance to focus on the continued growth in Canada and leveraging... (its) position as the No. 1 affinity provider."

The bank will continue to offer some insurance products in the U.S. For example, its TD wealth-management business will offer select life insurance products and annuities.

"But we won't have a broad personal and commercial insurance offering any longer," Morneau said.

USI, in announcing the share-purchase agreement Wednesday, said the acquisition is expected to contribute $58.2 million in revenues to USI on an annual basis. The deal is expected to close in September.

USI, a distributor of property and casualty insurance and employee benefits products to businesses throughout the United States, is headquartered in Briarcliff Manor, N.Y., and operates out of nearly 100 offices in 26 states.

-- The Canadian Press

Republished from the Winnipeg Free Press print edition August 25, 2012 B5

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