Confie has acquired the insurance operations of TDECU, one of Texas' largest credit unions. Financial terms were not disclosed.
As part of the deal, Confie has signed a long-term service agreement to continue providing insurance to TDECU’s more than 400,000 members. TDECU Insurance Agency, the credit union’s retail insurance arm, offers auto, home, renters, life and health insurance.
The business will become part of InsureOne, Confie’s standard and preferred personal lines agency, which runs its credit union partnerships. TDECU’s 34 insurance staff will join InsureOne’s credit union division.
“Credit unions are an important part of Confie’s growth strategy, and this partnership represents a significant expansion of that business into Texas,” said Cesar Soriano (pictured), Confie’s chief executive.
Tom Hammond, president of InsureOne, said the agency’s job is to make insurance simple, give members choice and help protect what matters to them. He added that InsureOne also helps small business owners among credit union members with commercial insurance.
The deal reflects a wider trend of credit unions handing their insurance agencies to specialist distributors. Running an agency in-house means managing carrier appointments, licensing and compliance, and keeping up with technology. That has become harder as personal lines markets have tightened in recent years and carriers have become more selective.
By selling the agency and signing a long-term service agreement, a credit union can keep offering insurance to members, and often continue earning revenue from it, without carrying the operational burden. For the buyer, the deal provides a large, loyal customer base and a trusted brand to sell through.
Confie has grown largely through acquisitions and partnerships across its distribution brands, which include nonstandard auto agency Freeway Insurance. Expanding InsureOne’s credit union business gives it more access to standard and preferred customers, who tend to have better risk profiles than the nonstandard market.
Texas is an attractive market for personal lines distribution because of its size and population growth, although Texas homeowners insurance has been affected by severe convective storm and hail losses.
For independent agents in Texas, the deal adds a large, well-resourced competitor for credit union members, who are often price-conscious and loyal to their institution. Members will now be able to access Confie’s wider range of carriers through a channel they already trust.
For credit unions still running their own agencies, the deal is an example of a model that many are now considering. Agency owners in other channels, such as banks and affinity groups, may also see more interest from consolidators looking for ready-made customer bases.
