Despite the unwelcome advance of COVID-19 and its growing impact on the global economy, the insurance mergers and acquisitions market activity is finishing out the first quarter of 2020 strong. Even as this global pandemic has had dire effects on many industries around the world, the insurance seller’s market continues to thrive. It is true that buyers are taking extra precautions to ensure that they make smart agency purchases and that agencies that are overvalued are sitting on the market for longer. The industry remains resilient, though, showing growth and profitability in a turbulent global economy.
Writing capacity in the P&C insurance market remains significant, bolstered by the flow of new capital into the marketplace. It’s important to note that the market is starting to harden. Despite experiencing significant catastrophic losses, the market couldn’t sustain rate increases across the board because of a flood of new capital in the insurance space.
Springtree Group has so many exciting agencies to share with you this month! If you want to learn more about any of the shops listed herein, or are interested in becoming a registered STG buyer, send us an email. You’ll have immediate access to our complete list of available agencies.
SHOP A: Ohio: This is a virtual book of business licensed in all 50 states, with top states being OH, TX, FL and NJ. This book is 98% commercial lines business. This agency is doing approximately $730K WAP. Primary carriers include The Hartford, Liberty Mutual, Hiscox and more! The agency management system is Tec Canary (recently acquired by Applied Systems) and has 536 PIF.
Reported Revenue: $82K. Asking Price: 2.5X of revenue. Tracking Code: SOHMC.
SHOP B: Colorado: Here we have an organically built auto insurance book located in Colorado. The book of business is 2 years old and 50/50 standard/non-standard lines business. Carriers include Kemper, Safeco, Travelers, Progressive and many more! The agency management system is EZlynx and has around 725 PIF.
Reported Revenue: $189K. Asking Price: 2X of revenue. Tracking Code: SCOGT.
SHOP C: New York. An independent full-service insurance agency located in New York, this agency has been doing business for 46 years and offers competitive insurance programs for Personal Automobiles, Homeowners, Motorcycles, Boats, ATVs, Business Insurance, and Commercial Auto. This agency has very few expenses and holds direct appointments with Safeco, Progressive, MetLife, Utica and many more. The agency management system is Applied and is fully automated/paperless.
Reported Revenue: $150K. Asking Price: 2.25X of revenue. Tracking Code: DNYSU.
SHOP D: Georgia. A pure Safeco block with policy holders in Georgia, Alabama, Arkansas, California and Utah, this block is made up of 70% auto and 30% homeowner business and 100% personal lines business. The seller plans to stay in the business but will sign a non-piracy/non-solicitation on the block being purchased. A redacted Safeco Agency report is available for qualified buyers.
Reported Revenue: $75K. Asking Price: 2X of revenue. Tracking Code: DGAMR.
SHOP E: North Colorado: This thriving, all commercial, Property and Casualty agency is headquartered in gorgeous Northern CO and is a very strong opportunity. This business is well established and thriving, having been a community staple for more than 28 years. This agency specializes in custom and copywritten insurance for the habitation sector. Direct appointments with Liberty Mutual, RT Specialty, The Hartford, Travelers, All Risk and more.
Reported Revenue: $550K. Asking Price: 2.6X of revenue. Tracking Code: SCOJM.
Springtree Group also provide all of our buyers with financing help via our wide array of financial tools and services without increasing your cost. Buyers find that working with STG’s brokerage team reduces their stress about buying an insurance agency. We assert that you’ll have a much better chance of qualifying and being approved for the right financing when working with our lenders. STG and all of our associated lending network partners have a deep understanding of the inner-workings of the insurance industry, which is not something you’ll find aplenty among other lending institutions.
If you’d like additional information about any of the insurance agencies for sale this month, email service@springtreegroup.com to become an official STG Registered Buyer. It costs you nothing and offers you countless benefits.
