The $635 million Charter Oak Federal Credit Union has sold the assets of an insurance firm operating through its CUSO.
On Sept. 1, Charter Oak in Groton, Conn., sold the assets of Charter Oak-The Insurance Professionals to Smith Brothers Insurance Inc., a Glatonsbury, Conn.-based insurance adviser and agent firm with more than 100 employees. The sale price was not disclosed. Charter Oak-The Insurance Professionals was previously owned by SCCT LLC, a CUSO of COFCU.
Discussions to sell COTIP began about a year ago, said Brian Orenstein, CEO of COFCU. The CU was looking to grow the agency so that more opportunities and more insurance carrier options would be available to members. When SCCT bought COTIP in 2004, it was known as The Insurance Professionals, Orenstein said. SBI was among several companies looked at as potential buyers, he added. SCCT was founded around 2000 by COTIP and is the CU's sole owner. Orenstein said the CUSO now has one affiliation with shared branching network Credit Union Service Corp.
"SBI is a family-owned business that matches our credit union philosophy. Membership in Charter Oak continues to provide consumers with a wide variety of products and services, all of which save them time and money," Orenstein said.
Orenstein said he was not sure how many insurance policies were under management prior to the sale. He also could not provide the total dollar amount under management.
Despite the sale, members of COFCU will continue to be served by SBI with personal and business insurance and risk management products and services, according to the CU. COTIP will maintain offices at COFCU's Chicago Avenue, Groton and Long Hill Road, Groton branches.
"We are proud to be affiliated with COFCU and will offer high quality advice and service at competitive pricing to COFCU's 50,000 households and businesses," said Joe Smith, president/CEO of SBI.
Established in 1971 by brothers Bob and Brian Smith, SBI provides commercial insurance lines, personal lines, employee benefits, surety, 401(k), risk management, human resources and financial services. According to its website, it has an international partnership with Assurex Global, which through its partner affiliations, is considered to be the third largest brokerage facility in the world, SBI said.
Orenstein said the transition for members will be a smooth one with SBI helping to market the insurance program.