CHARLOTTE (Bloomberg) — Bank of America Corp., the second-biggest US lender, is exploring options for its business that helps companies buy insurance and employee-benefit plans.Banc of America Corporate Insurance Agency LLC, based in Cranford, New Jersey, employs about 300 associates and handles more than $1 billion of premiums for clients each year. The bank said in a statement yesterday that its securities unit will advise on alternatives. Spokesman Will Wilson declined to comment, including on whether the business is up for sale.

Private equity firms have already scooped up two other insurance brokers this year. Earlier this month, Goldman Sachs Group Inc.'s buyout unit bought USI Holdings Corp., the ninth- biggest broker, for $1.4 billion including debt. In March, Morgan Stanley and Apax Partners Worldwide LLC agreed to buy No. 12 Hub International Ltd. for $1.8 billion.

"There's been more deal activity in the commercial insurance space, private equity firms have gotten involved and the multiples paid have risen pretty significantly," said RBC Capital Markets analyst Joseph Morford in San Francisco. "That may be part of the reasoning for the strategic consideration now."

Banc of America Corporate Insurance Agency is the 27th largest US insurance broker, with about $78.5 million in revenue in 2005, according to Business Insurance magazine. The division is separate from Banc of America Insurance Services Inc., a business owned by the company that sells life, auto and health insurance policies to individuals and small businesses.

Bank of America, based in Charlotte, North Carolina, acquired the corporate insurance business as part of its $48 billion purchase of FleetBoston Financial Corp. in 2004.

In addition to private-equity firms, Morford said other banks with commercial-insurance divisions, including Wells Fargo & Co. and Wachovia Corp., might be interested in buying the unit.

"The multiples you're seeing in the brokerage industry are absolutely silly," Michael Cherkasky, chief executive officer of Marsh & McLennan Cos., the world's largest broker, said in an interview on May 8. Private equity investors have inflated prices for insurance brokers far beyond what they're worth, he said.

The sale of the unit probably wouldn't affect Bank of America's share price, said Morford, who has a "sector perform" rating on the stock.