German American Bank sells insurance subsidiary
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Jasper-based German American Bancorp Inc. announced Monday it has sold the assets of its subsidiary, German American Insurance, to Hilb Group, an insurance broker headquartered in Richmond, Virginia. The all-cash deal is valued at $40 million.
Founded in 2009, Hilb Group has more than 2,200 employees at over 125 locations in 29 states and provides services to all 50 states.
German American CEO Neil Dauby said in a news release that the sale will ensure continued access to the company’s products and services for customers and provides a new home for employees.
“This sale allows us to realize significant value at an opportune time,” Dauby said. “The GAI team has done a tremendous job building the agency in the last 25 years, and we are confident the expanded access to products, services and expertise through Hilb Group will support a strong future for all.”
As part of the deal, the subsidiary will continue to operate in southern Indiana and Kentucky under the name German American Insurance—A Hilb Group Company. All employees will be retained under the continued leadership of President Diana Wilderman.
“We are very excited that our entire insurance team will join Hilb Group,” Wilderman said in the release. “Hilb’s dedication to the communities they serve and their culture of providing the very best service to their customers is exactly what built the success of German American Insurance.”
German American said the deal will generate $27 million for the company after taxes and transaction costs, which is four times the subsidiary’s total revenues in 2023.