Welcome to the April 2018 edition of the Springtree Group Insurance Agent Sales Alerts. The M&A market activity in the segment of our focus has shown strength as we finish the first quarter of 2018. The seller’s market continues; however, we have seen continuing evidence that buyers are being rational with their purchases and overvalued agencies are setting in the market waiting for buyers.

The P&C Insurance market capacity continues to be very robust and new capital continuing to flow into the insurance marketplace, but unlike the last few years, the market is showing signs of hardening. The horrendous world wide catastrophic loss events in 2017 may surpass the $500 billion mark in terms of economic costs and insured losses, making 2017 the worst year on record. Combining man-made and natural catastrophe losses with other complex risks, such as cyber or political risk—and it is reasonable to expect a hardening of rates during 2018. The continued mergers and acquisitions (M&A) activity within the insurance industry is having no real effect on market capacity, at least in the short term.

The listings below are a small sample of some of the new independent agencies discovered through our research activities or provided directly to STG during the last 30 days. Upon request we will provide our clients access to previous month’s and off cycle listings.

SHOP A: Omaha, Nebraska – A well established, locally owned and operated insurance agency. Full service shop selling P&C as well as Individual health products is now for sale. 90% Personal Lines and 10% commercial lines. Operates in four states. 95% standard lines. Great markets including: Nationwide, Hagerty, Travelers, MetLife, Foremost, CIGNA and more. Reported WAP $935K / Report Revenue: $110K / Asking Price $170K.

SHOP E: Portland, Oregon – Independently owned and operated agency. Established in 2009 and has a primary focus in construction lines business. 60% Personal / 40% Commercial Lines business. Markets include: Travelers, Allied, Safeco, Mapfre, Met-Life and many more! All appointments are direct except the Allied and Safeco appointments. This agency is 80% Standard / 20% non-standard lines business. Reported Revenue: $110K / Asking Price $240K.

SHOP F: Northeastern Ohio – A strong, well established preferred lines P&C shop is now available. Offers home, auto, renters, business insurance along with bonds and personal liability coverage. Special commercial lines focus in Schools, Artisan and Wholesale. Great markets including; Liberty, Travelers, CNA, SafeCo and others. Reported Revenue $340K / Asking Price 1.75X of Revenue.

Being associated with STG provides you access to the strongest array of M&A and financial tools and services available to support your acquisition, perpetuation and operational needs in any part of North America. Proudly serving customers in North America, South America, Europe and the Bahamas. Please call (972) 395-8811 or contact us online for additional information on services and opportunities.