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Union Bank Parent Co. Buys Burnham Insurance

Union Bank Parent Co. Buys Burnham Insurance

BY MANDY JACKSON

Staff Writer

San Diego-based John Burnham Insurance Services has been acquired by UnionBanCal, the San Francisco-based parent company for Union Bank of California.

Terms of the transaction were not disclosed. Burnham’s shareholders approved the transaction Dec. 18.

The local company , founded in 1891 , will not make any immediate changes, including its name, said Brad Orr, president and CEO of the insurance brokerage.

Orr said the transaction was expected to close Dec. 20.

According to Orr, Burnham was approached by the banking company several times before it agreed to the deal. The brokerage was not looking for a buyer.

“We became motivated by the opportunity to link up with a major financial partner,” he said.

“Ultimately we will find a way to leverage our insurance clout with our customers and with bank customers. Their strategy is to develop that over time,” Orr added.

Union Bank says the deal with Burnham reflects a strategy to provide added value to commercial bank customers.

This is the bank’s second insurance company acquisition. Last year, it purchased Armstrong/Robitaille Business and Insurance Services in Fullerton.

“John Burnham Insurance Services is an ideal partner for us because of its extensive knowledge of the insurance and risk management needs of small and mid-sized companies,” said Union Bank chairman Richard C. Hartnack in a media release.

Burnham claims to rank among the largest commercial insurance brokerages in the United States and says its annual premiums exceed $200 million. The company was ranked third on the San Diego Business Journal’s list of the top 22 property and casualty insurance agencies and brokerages, which was published in February.

The firm’s services include risk management, liability, employee benefits, surety, workers’ compensation, group medical and life, and personal lines of insurance. It has 103 employees in San Diego and Irvine.

Union Bank has 254 banking offices in California, six banking offices in Oregon and Washington and 18 international facilities. The bank’s parent company has assets totaling $37.6 billion as of the end of September.

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