Within the insurance distribution sector, M&A market conditions continue to remain quite active as we move toward the holiday season of 2018. These conditions are predicted to continue well into 2019. What does this mean for buyers? Without a doubt, agency valuations are going up, up, up. Many current agency owners around the country are watching these trends which has led to an uptick in independent agencies sales/listings. While agency valuations are rising, this is still an opportune time for interested buyers because if the trend continues as predicted, valuations will only continue to spike as the new year greets us.
The active conditions within the M&A market are a result of numerous factors occurring simultaneously, including a general improvement in the overall macroeconomic conditions throughout the U.S. Due to a drop in unemployment rates, higher per capita incomes and a rise in homeowners/mortgages, the national need for insurance coverage across the board has increased.
Is the insurance industry on FIRE? Absolutely! And, just as we recognize that fact, we also acknowledge that it can be challenging for interested buyers to find the insurance agency that is the right fit. In fact, many people don’t even know where to begin looking when it comes to making an independent insurance agency purchase. Springtree Group is a team of insurance industry specialists serving the agency and brokerage community. We make it easy to find an active agency for sale that works for you and your budget. Included below is a small sample of the newest listings we have to share. Upon request, we will provide Registered Buyers with access to previous months’ and off cycle listings.
SHOP A: Houston, Texas: This home, auto and commercial independent property and casualty operation was stablished in 1980. There are currently two employees (1 commercial and 1 personal lines producer). Markets include: Hartford, Travelers, Progressive State Auto and more. Reported Revenue $175K / Asking Price 2X of revenue.
SHOP C: Maryland: This 30-year-old independent company is leader in the employee benefits TPA space. Domiciled in Maryland and licensed in all states in which there are active customers, this significant practice designs and administers benefit plans for employers and associations. This agency has seven employees with products being distributed through insurance agents and brokers. Reported net income $275K / Asking Price 2X of net.
SHOP F: South Eastern South Carolina – Here we present a well-established, nearly three-decades old independent P&C agency. This shop is 60% commercial lines and 40% personal. There are three 1099 employees. Major carriers include: Bristol West, Foremost, GAINSCO, Liberty Mutual, Occidental, Progressive and Safeco. Seller would consider some paper. Reported Revenue $162K / Asking Price $350K.
We continue to be excited about the number of new independent insurance agency opportunities that are currently available for purchase. In addition to the three agencies shared above, we also have details about listings in Florida (East Coast), Arizona, Texas, Nevada, New York Metro, Philadelphia Metro, California and more. For our complete list of independent insurance agencies for sale, simply reach out to Springtree Group via phone, email, or send us a message via our contact form.
