BB&T Insurance Services to Add McGriff, Seibels & Williams

November 12, 2003

North Carolina-based BB&T Insurance Services, in its largest acquisition ever, said it plans to buy McGriff, Seibels & Williams Inc. of Birmingham, Ala.

The transaction, approved by the directors of BB&T Corporation and McGriff, Seibels & Williams, includes $304 million in stock based on BB&T’s closing price of $38.84 on Nov. 10, and $50 million in cash. BB&T will issue between 7.83 million and 8.65 million shares based on BB&T’s average closing price during a pricing period prior to closing. The transaction also allows for a total “earnout” payment to McGriff, Seibels & Williams’ shareholders of approximately $102 million in cash over a five-year period if McGriff, Seibels & Williams exceeds certain performance targets.

The merger will reportedly create the sixth largest insurance broker in the nation, and is expected to be completed in the first quarter of 2004. With more than 775 employees, McGriff, Seibels & Williams will operate as a wholly-owned subsidiary of Branch Banking and Trust Company. It will retain its name and management team.

McGriff, Seibels & Williams, with roots dating back to 1886, is served by major offices in Atlanta, Birmingham, Dallas and Houston. Its risk management specialty areas include energy and marine, financial services, commercial, construction, surety, employee benefits, healthcare and public entity. Included within McGriff, Seibels & Williams is subsidiary Wood & Company Inc., a wholesale insurance broker with more than 75 employees and $175 million in premiums, mostly in property, casualty and professional liability coverages. With offices in Atlanta and Dallas, Wood & Company will operate as part of Birmingham-based CRC Insurance Services. CRC is a separate BB&T-owned wholesale insurance broker.

McGriff, Seibels & Williams also operates Attenta, one of the largest third party administrators for workers’ compensation coverage in the nation. Attenta’s services include claims management, loss control and medical cost containment programs. Attenta has offices in Birmingham; San Francisco; Houston; Dallas; Raleigh, N.C.; Gulfport and Jackson, Miss.; and Lubbock, Texas.

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