Wachovia Corporation is set to acquire Palmer & Cay Inc., the 15th largest insurance brokerage and benefits consulting firm in the United States.
The 137-year-old Savannah-based Palmer & Cay has 950 employees and operates 34 offices in the District of Columbia and 22 states, primarily on the East Coast, Midwest, and Southwest. According to the company, Wachovia will have more than $400 million in annual revenues and approximately 1,800 employees following the completion of the acquisition.
“Wachovia is committed to becoming a major force in the insurance brokerage arena. The addition of Palmer & Cay will significantly enhance Wachovia’s property and casualty and employee benefits capabilities while significantly enhancing our market coverage on the East Coast, and in the Midwest and Southwest,” said Stanhope Kelly, senior executive vice president of Wachovia Corporation. “We believe this new combination will create one of the premiere insurance organizations in our industry.”
As part of the transaction, John E. Cay III, chairman and chief executive officer of Palmer & Cay, will become chairman of Wachovia Insurance Services. McDowell will continue serving as president and chief executive officer, and Karen J. Lehman, chief financial officer of Wachovia Insurance Services, will oversee the division’s financial operations.
“Wachovia Insurance Services and Palmer & Cay are the ideal cultural fit,” said Cay. “Both organizations place a high value on client-focused services, technical expertise and industry specialization. We believe our combined firms will be viewed as an even greater resource to our clients.”