Charter Oak sells insurance unit to expand its coverage

The Charter Oak Federal Credit Union said Wednesday it is partnering with a Glastonbury-based company to offer expanded insurance services to its membership.

The credit union, headquartered in Groton, said it sold the assets of its Charter Oak-The Insurance Professionals to Smith Brothers Insurance, a regional insurance company with more than 100 employees.

The Insurance Professionals was owned by SCCT, which is a service organization of Charter Oak. Financial terms of the deal were not disclosed by the credit union.

Brian Orenstein, Charter Oak's chief executive officer, said the new alliance of insurance agencies will benefit his membership because Smith Brothers offers a greater array of insurance products and services than Charter Oak could offer through its smaller insurance agency.

"Our membership will get more options, as well as an overall better insurance product," Orenstein said, through this new partnership.

Smith Brothers, which has offices in Glastonbury and East Hartford, was created in 1971 by Bob and Brian Smith and is a full-service insurance and financial-services organization. The firm has experience in commercial and personal lines insurance, as well as employee benefits, surety and 401(k) and 403(b) plans. It also is affiliated with Assurex Global, which is worldwide partnership of independent insurance, risk management and benefits brokers.

Orenstein said Smith Brothers remains a family-owned enterprise and its corporate philosophy meshes well with Charter Oak's credit union philosophy. "We are proud to be able to extend these services to all consumers who live or work in New London and Windham counties," he added.

Operations locally will still be known as Charter Oak-The Insurance Professionals, and the insurance alliance will offer personal and business insurance, along with various risk-management products and services.

The credit union will maintain insurance offices in its Chicago Avenue branch as well as its Long Hill Road branch, which are both in Groton.

Joe Smith, president and chief executive officer of Smith Brothers Insurance, welcomed his company's new alliance in southeastern Connecticut.

He said his regional insurance company was proud to be partnered with Charter Oak, and he said it will continue to offer competitively priced insurance-related products and services to credit union members.

Charter Oak, which is owned by its members, has a membership base that extends throughout New London and Windham counties. The credit union, founded in 1939 as the Groton Shipbuilders' Federal Credit Union, has assets of more than $634 million.

Its membership exceeds 71,000 and it has 11 branches in New London and Windham counties. Charter Oak's branches are located in Groton; Pawcatuck; Niantic; Waterford; Norwich; Montville; Willimantic, and Dayville. Its newest branch is in Killingly.

a.cronin@theday.com