Wells Fargo To Exit Personal Insurance Business

Business Wire

Decision is in line with the company’s mission to simplify and streamline product offerings to better serve customers

SAN FRANCISCO--(BUSINESS WIRE)-- Wells Fargo & Co. (NYSE: WFC) announced today that it will exit the Personal Insurance business and immediately begin winding down marketing and product promotion activity. The decision comes after a strategic assessment of the business, which began in early October 2017.

“Wells Fargo continually reviews our product and service offerings to ensure they meet our customers’ needs and align with the company’s long-term strategic goals,” said Laurie Nordquist, head of Personal Insurance. “The decision to exit the Personal Insurance business reflects these practices, and we will wind down operations in a measured and responsible way for our existing customers.”

In December 2015, Wells Fargo announced the sale of its crop insurance business, Rural Community Insurance Services, and its subsidiary Rural Community Insurance Company, to Zurich American Insurance Company, a subsidiary of Zurich Insurance Group. The sale was completed in 2016. On June 27, 2017, Wells Fargo announced the sale of Wells Fargo Insurance Services USA to USI Insurance Services, a leading local and national insurance brokerage and consulting firm. In conjunction with the sale of the commercial brokerage business, the remaining Personal Insurance business became part of Wells Fargo’s Consumer Lending division. On November 9, 2017, Wells Fargo Insurance, Inc. announced that it had signed a purchase agreement with Hub International Limited, a leading global insurance brokerage to sell its crop insurance broker business.

Since 2003, Wells Fargo has offered auto, homeowners, renters and umbrella personal insurance products to consumers and anticipates completing the exit process during the first quarter of 2018. Until that time, Wells Fargo will continue to make available its suite of Personal Insurance products, in addition to servicing and managing customer policies.

The Personal Insurance business is the last remaining insurance brokerage agency in Wells Fargo’s portfolio, and its financial contribution was not material to the company. This decision does not impact Wells Fargo’s Wealth and Investment Management’s life insurance practice.

In the coming weeks and months, Wells Fargo will provide information and updates to customers as the company takes steps to exit the business.

About Wells Fargo

Wells Fargo & Company (NYSE: WFC) is a diversified, community-based financial services company with $1.9 trillion in assets. Wells Fargo’s vision is to satisfy our customers’ financial needs and help them succeed financially. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 8,400 locations, 13,000 ATMs, the internet (wellsfargo.com) and mobile banking, and has offices in 42 countries and territories to support customers who conduct business in the global economy. With approximately 268,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 25 on Fortune’s 2017 rankings of America’s largest corporations. News, insights and perspectives from Wells Fargo are also available at Wells Fargo Stories.

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