As the regulatory climate relaxes and cash reserves continue to grow, there is reason for great optimism within the current M&A market. The recent increase in mergers and acquisitions activity looks like it will continue well into 2019. At Springtree Group, we anticipate that the number of our independent insurance agency transactions will increase over the next 12 months.
In addition to the aforementioned reasons, tax reform and a steadily improving US economy are also responsible for the increased activity within the M&A market. 2018 has proven to be one of the most active years for both life insurance and property and casualty mergers and acquisitions in recent history. These market conditions mean that there is likely to be a continued push for deals throughout 2019 as well.
While the conditions of the insurance M&A market are looking fantastic, it means nothing if you don’t know where to start. Even if you want to dip your foot into the insurance industry pool, how do you find out what agencies are for sale? Which agencies are a good fit for you? This is where Springtree Group steps in. We are 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: South Texas: This highly desirable general lines home and auto, P&C agency has been in business for fifteen years in south Texas. They do business and have direct appointments with Progressive, Texas General, Texas Windstorm, Gainsco and National Lloyds. Walk-in traffic is prevalent, and growth continues every year. 70% standard lines. Reported Revenue $150K / Asking Price 2X of reported revenue.
SHOP B: 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. Specifically, there are 125 cafeteria plans, payroll deduction services, short and long-term care and self-insured medical, dental and vision plans. This agency has seven employees with products being distributed through insurance agents and brokers. Reported net income $275K / Asking Price 2X of net.
SHOP E: Western Florida: Here we present a multi-location general agency located in western Florida. This agency has been writing insurance and selling medical and P&C products since 1983. The bulk of this shop’s business is in Medicare supplement and advantage business. There are currently 19 sales agents. This agency holds carrier appointments with Blue Cross Blue Shield, Heritage, Progressive and more. Reported Revenue $2.35M / Asking Price 2X revenue.
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 Northern Ohio, South Carolina, Texas, New York Metro, Tampa, Florida, 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.