Tompkins Financial Corp. has completed the sale of its wholly owned subsidiary, Tompkins Insurance Agencies, Inc. (TIA), to Arthur J. Gallagher & Co. for approximately $223 million in cash. The transaction has resulted in a pre-tax gain of $183 million, the financial services company announced.
With a 150-year history, TIA is a retail insurance agency that offers property/casualty products and employee benefits. Based in Ithaca, New York, TIA operates more than 20 locations across western and central New York, as well as Pennsylvania.
As part of the deal, all of TIA’s current leadership and direct employees will be joining Gallagher, according to the announcement.
Stephen S. Romaine, President and CEO of Tompkins Financial Corp., commented, “It was in the long-term interests of the TIA employees and customers to find a partner that is best positioned to ensure their continued success well into the future. We are fully confident that Gallagher is the right partner for all stakeholders. We wish the TIA team all the best and extend our heartfelt thanks for their contributions to our organisation.”
Romaine added that the firm is confident in its ability to reinvest a portion of the proceeds to replace the earnings lost from Tompkins Insurance in the short term, while also using the capital to support its long-term strategic investments.
Gallagher, a global insurance brokerage, risk management, and consulting services firm headquartered in Rolling Meadows, Illinois, operates in approximately 130 countries worldwide.
Tompkins Financial Corp. is a banking and financial services firm that serves the Central, Western, and Hudson Valley regions of New York, as well as the Southeastern region of Pennsylvania. Headquartered in Ithaca, Tompkins Financial is the parent company of Tompkins Community Bank.