Ann Arbor-based University Bank has completed its first purchase of an independent insurance agency in 17 years, acquiring Ann Arbor Insurance Centre for $1.13 million.
Over the next few months, the bank’s current insurance agency, University Insurance & Investment Services, will be absorbed into the Ann Arbor Insurance Centre office.
University Bank is headquartered in the Hoover Mansion on Washtenaw Avenue in Ann Arbor.
Photo courtesy of AADL
“This is a major expansion of our agency. The group we bought is larger than the one we had built up ourselves.”
According to a news release, the bank expects insurance revenues to grow to 1.2 percent of revenue, totaling approximately $42 million annually.
Ranzini said the acquisition was driven by a desire to be able to offer plans from Auto Owners Insurance and Citizens Insurance, two of the largest insurance companies in Michigan.
“For 15 years we’ve been seeking appointments with them, but they aren’t giving them out so you really have to buy into the companies,” he said.
“This really fills out our stable of companies. We were an independent agency representing 49 companies in Michigan before, but those are the two big ones we didn’t have. Now we feel we have a full pallet to offer everyone the best products from the best companies.”
University Bank also acquired the Ann Arbor Insurance Centre building at 2621 Carpenter Road in Pittsfield Township. Ranzini said that he may look into developing the vacant half-acre lot next to the building.
“We need more parking for the location to maximize our use of the land, but there’s also potential for other development there,” he said.
“I have interest in talking with Dennis Dahlmann who bought the hotel immediately on the other side of the lot.”
University Bank, founded in 1890, is the ninth largest bank in Michigan. The bank holds and manages a total of over $12.2 billion in loans and assets.
Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2