WATERBURY, Conn.--(BUSINESS WIRE)--Feb. 3, 2000--Webster Financial Corporation (Nasdaq: WBST), through its wholly owned insurance subsidiary Damman Insurance Associates, today announced the acquisition of The Levine Companies, a privately owned Waterford and Norwich, Connecticut based insurance agency. Terms were not disclosed.
"The merger with The Levine Companies strengthens Webster Insurance, particularly in eastern Connecticut," said James C. Smith, Webster chairman and chief executive officer. "We are a leading financial services provider to businesses and families throughout Connecticut. Our success has motivated us to seek additional partnerships with high caliber agencies."
Webster entered the insurance agency business in 1998 through its acquisition of Damman Insurance Associates, a privately owned insurance agency with offices in Westport and Wallingford. By merging The Levine Companies with Damman, both Webster Insurance and Levine customers have greater access to a complete array of personal and commercial insurance services, as well as trust, investment and banking services.
The Levine Companies, which have 50 employees, wrote $41 million in premiums in 1999. Founded in 1928, the group combines three entities; Louis Levine Insurance Agency, Inc., Levine Financial Services, Inc., and Retirement Planning Associates, Inc. The agency offers a full range of insurance services, including property and casualty insurance, risk management, investment planning and benefits planning.
"Webster recognized early on that financial services were converging," said John Queirolo, president and CEO, Webster Insurance. "With this merger, we have expanded our Webster Insurance offerings to individuals, families and businesses from the New York border to the Rhode Island border."
Commenting on the merger, Gerald Levine, president of the Louis Levine Insurance Agency, said, "By choosing Webster as our partner for the future, The Levine Companies have found the best way to serve our customers' varied needs." Daniel M. Carter, president of Levine Financial Services, Inc. and Retirement Planning Associates, Inc. said, "Increasingly, individual and business customers will look to have all or most of their banking, investment and insurance needs managed through a single source. We are teaming up with Webster to make this vision a reality for the benefit of all of our customers."
Webster intends to account for the Levine transaction using the purchase method of accounting and Webster's Board has authorized the repurchase of up to 41,000 of its common shares specifically for reissuance in this transaction.
Pro forma for pending merger and branch purchase activity, Webster Bank has $11 billion in assets and operates through a network of more than 125 banking offices, and 200 ATMs, in addition to telephone, video, Web and PC banking.
Webster is also a leading, full-service commercial and mortgage lender in Connecticut. Webster Trust, the bank's trust and investment management subsidiary, is one of the leading bank trust companies based in Connecticut. Webster Investment Services is a provider of mutual funds, fixed and variable annuities, and individual securities transactions. Webster Insurance, which consists of Damman Insurance Associates and The Levine Companies, is one of the largest agencies in the state.
Webster's Nowlending subsidiary found at www.nowlending.com on the Worldwide Web, originates low-cost mortgages over the Internet for customers across the United States.
For more information on Webster visit www.websterbank.com.
CONTACT:
Webster Contacts:
Jim Kalach, Media, 203/578-2461
James Sitro, Investors, 203/578-2399
or
Levine Contacts:
Gerald Levine, CPCU, 860/447-1735
Daniel M. Carter, CLU, RFC, 860/447-1735