Hilb Group Acquires North Carolina CUSO

A Virginia insurance broker has acquired a CUSO of North Carolina’s Allegacy Federal Credit Union.

Allegacy FCU of Winston-Salem, N.C. ($2.1 billion in assets, 170,344 members) announced the acquisition of Allegacy Benefit Solutions Wednesday saying the price of the sale was confidential.

Raj Madan, chief marketing officer for Allegacy FCU, said Allegacy Benefit Solutions has about 20 employees. “The vast majority are transitioning to Hilb. The few that are not will have the opportunity to apply for open positions within the Allegacy Federal Credit Union,” he said.

Allegacy FCU had 389 full-time and 11 part-time employees as of June 30.

The buyer is the Hilb Group, an insurance broker based in Richmond, Va. formed in 2009. It lists 134 offices around the country on its website.

Allegacy Benefit Solutions is a subsidiary of Allegacy Services LLC, a CUSO wholly owned by Allegacy FCU. Allegacy Benefit Solutions serves the credit union, its members and some of its 1,800 Select Employee Groups.

Hilb Group offers national property, casualty and employee benefits. Allegacy Benefit Solutions offers consulting and benefits packages with health, dental, accident, vision, and other insurance products that an Allegacy news release said are “customized to help employers attract and retain talent.”

Timothy R. Moore, president of Allegacy Services, said Hilb’s acquisition of Allegacy Benefit Solutions “is beneficial for current ABS clients and ABS employees because it represents an opportunity to significantly scale up the products and services that are becoming increasingly wanted and needed by employers and their employees.”

“In addition, the sale provides significant additional resources for investment in the rapid growth of Allegacy Services, and that’s a huge benefit for Allegacy credit union members,” Moore said.

Allegacy services and its affiliated companies continue to employ more than 30 individuals.

Allegacy President and CEO Cathy Pace said the sale of Allegacy Benefit Solutions and the resources it provides to advance the growth of Allegacy Services will “enhance Allegacy’s capacity to offer its members, business and community partners a powerful portfolio of products and services through its CUSOs.”

Hilb Group CEO Ricky Spiro said the acquisition is “a perfect fit for our growth strategy of joining with acquisition partners who have a strong history and outstanding reputation of serving local communities. Together we look forward to offering even greater resources to the clients we are privileged to serve.”

Moore said the Allegacy Benefit Solutions employees joining Hilb’s 2,000 employees will be given opportunities for more career growth, leadership development and skills training.

“As part of Hilb, ABS will continue to offer current and future clients the personalized service they have come to appreciate—provided by the same employees they have come to know and trust—now with a larger portfolio of services and products,” Moore said.