Tompkins Financial Divests Insurance Unit to Arthur J. Gallagher for $223 Million

Tompkins Financial Corporation has completed the sale of its insurance subsidiary, Tompkins Insurance Agencies (TIA), to Arthur J. Gallagher & Co. for approximately $223 million in cash. The transaction, announced on 4 November 2025, is expected to generate a pre-tax gain of about $183 million for the Ithaca, New York-based banking and financial-services provider.

Established roughly 150 years ago, TIA offers property and casualty coverage as well as employee-benefits consulting to commercial and individual clients in Pennsylvania and New York. The divestiture ends Tompkins Financial’s direct involvement in the insurance brokerage sector while opening the way for TIA’s staff and customers to join a global broker with a far-reaching distribution network.

Tompkins Financial President and Chief Executive Officer Stephen S. Romaine said the decision to sell centered on positioning employees and policyholders for long-term success under a larger, specialized owner. Romaine noted that proceeds from the sale will allow the parent company to offset lost earnings from the insurance business in the near term and to deploy capital for additional strategic initiatives over the longer horizon.

All members of TIA’s management team and workforce, including long-time agency leader David Boyce, have transferred to Gallagher as part of the deal. Boyce will continue to oversee operations from the existing office and will report to Brendan Gallagher, head of the acquirer’s retail property-and-casualty division in the U.S. Northeast, and to Scott Sherman, who leads the region’s employee-benefits consulting and brokerage activities.

Through Gallagher’s platform, clients historically served by Tompkins Insurance gain access to expanded risk-management resources, specialized underwriting expertise and global carrier relationships. Gallagher Chairman and CEO J. Patrick Gallagher, Jr. described TIA as a respected firm that strengthens the broker’s capabilities in commercial lines, personal lines and benefits consulting across the Northeast corridor.

The acquisition advances Gallagher’s broader growth strategy, which has combined organic expansion with sizable purchases of independent brokers. In August 2025, the Illinois-based group closed a $13.45 billion agreement to acquire AssuredPartners, adding significant scale in commercial property/casualty, employee benefits, specialty lines and personal insurance. According to the company’s latest annual filing with the U.S. Securities and Exchange Commission, Gallagher generated more than $10 billion in total revenues in 2024.

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Tompkins Financial, which operates community banking offices and wealth-management services across several upstate New York markets, indicated that its balance sheet remains strong following the divestiture. The institution expects to redeploy a portion of the cash proceeds into initiatives aimed at replacing earnings previously contributed by the insurance segment, although specific projects were not disclosed.

Completion of the sale follows receipt of customary regulatory approvals and the satisfaction of standard closing conditions. Neither party publicly reported any outstanding contingencies or post-closing adjustments.

Crédito da imagem: Gumbariya/Shutterstock.com