KeyCorp (KEY) Vends Key Insurance & Benefits Services To USI

Continuing with the aim of focusing on core operations, KeyCorp (NYSE:KEY) is set to sell Key Insurance & Benefits Services, Inc. Notably, the unit was acquired as part of the First Niagara Financial Group merger in 2016.

Last week, KeyBank, the banking subsidiary of KeyCorp signed a deal to vend the unit to USI Insurance Services ("USI"), the New York insurance broker. The deal, awaiting certain regulatory approvals, is anticipated to close in second-quarter 2018. However, financial terms of the agreement remain undisclosed.

With a division headquartered at Buffalo, NY, Key Insurance & Benefits Services, Inc. works with 350 employees across eight offices in upstate New York, Pennsylvania and Connecticut.

Morgan Stanley & Co. LLC — a unit of Morgan Stanley (NYSE:MS) — is serving as the financial advisor to KeyBank.

"We want to thank our teammates at Key Insurance & Benefits Services, Inc. for their contribution to Key. Through this sale, we are highlighting our focus on delivering core banking services across our footprint. We believe that Key Insurance & Benefits Services, Inc. and USI represent complementary businesses without geographic overlap and a shared commitment to providing strong client service and product expertise," said E.J. Burke, co-president, Key Community Bank.

Shares of KeyCorp gained 4.3% over the last six months, underperforming the industry’s rally of 4.9%.

KeyCorp currently carries a Zacks Rank #4 (Sell).

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BankUnited, Inc. (NYSE:BKU) has been witnessing upward estimate revisions for the last 30 days. Further, the stock climbed more than 12% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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