Welcome to the April edition of your STG Insurance Agency Sales Alert. The M&A market activity in the segments of our focus has shown strength as we finished the first quarter. The seller’s market continues; however, we have seen continuing evidence that buyers are being rational with their purchases and overvalued agencies are sitting on the market wanting for buyers.
Market capacity continues to be very robust. Lower-than-usual catastrophe losses have contributed to overall softening conditions in the P&C market, and as long as that remains the case—and capital remains abundant, which is expected—soft-market conditions should remain the norm.
The listings below are a sample of some of the new independent insurance agencies for sale discovered through our research group or provided 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: Arizona — An established 30-year-old independent life insurance, annuity and health insurance agency is now for sale. Buyer must be familiar with annuities. Asking Price $75K / Reported Revenue $125K.
SHOP B: Arkansas — A 25-year-old independent agency specializing in life and health insurance products is now for sale. The strong group of markets include Principal, Genworth, Jackson, Human, Blue Cross, and United Health Care among others. Asking Price $150K / Reported Revenue $73K.
SHOP G: Iowa — A 21-year-old independent ancillary health insurance broker is for sale. Services mainly ancillary health insurance plans for commercial clients including associations, employers groups, and insurance companies. Asking Price $TBD / Reported Revenue $2MM / EBITDA $264K.
SHOP D: Chicagoland — A well-established seven year old insurance agency and premium finance company for sale. The book is comprised of 20% preferred and 80% non-standard. Excellent retention rates in the upper 95 %. A stable and professional staff. Insurance markets include: Progressive, Travelers, CNA Surety, KAI, Founders, American Alliance and others. Asking Price $350K / Reported Revenue $183K.
Other opportunities exist in Texas, Iowa, Indiana, Central and Southern California, Georgia, Colorado, and elsewhere across the United States. Being associated with STG provides you access to the strongest array of M&A, agency lending tools and financial services available to support your acquisition, perpetuation and operational needs in any part of North America. Please call (972) 395-8811 or contact us online for additional information on services and opportunities.