Tompkins Financial sells insurance arm to Gallagher for $223m

Core Insights - Tompkins Financial Corporation has divested its insurance subsidiary, Tompkins Insurance Agencies (TIA), to Arthur J. Gallagher & Co for approximately $223 million in cash, resulting in a pre-tax gain of $183 million for Tompkins Financial [1][2] Group 1: Transaction Details - The sale of TIA, which has been operational for 150 years, includes its property and casualty insurance services as well as employee benefits services in Pennsylvania and New York [1] - Following the acquisition, all TIA leadership and staff will join Gallagher, with David Boyce continuing as the leader of TIA [2][3] Group 2: Strategic Implications - Tompkins Financial's CEO emphasized that the partnership with Gallagher is in the long-term interests of TIA employees and customers, ensuring continued success [2] - The proceeds from the sale will allow Tompkins Financial to invest in replacing the earnings from Tompkins Insurance in the near term and support strategic investments in the long term [2] Group 3: Gallagher's Perspective - Arthur J. Gallagher's CEO expressed that the acquisition of Tompkins Insurance Agencies enhances their brokerage capabilities across commercial lines, personal lines, and employee benefits [4] - The integration of TIA's customer base into Gallagher's network will provide enhanced resources and services [3]