Welcome to the final edition of your STG Insurance Agent Sales Alerts for 2015! The year is not over and 2015 has already solidified itself as a record year for Insurance Agency M&A. Announced deals for the first three quarters of 2015 total 389. The previous record was in 2012, with 328 deals announced for the full year (Sica / Flecher).

We, of course, are particularly proud of all of the STG Registered Buyers that added to this significant year. Most of us are now turning our focus to 2016. Our clients continue to be enthused about buying opportunities because of a number of critical motivations, including:

  • Gaining critical mass
  • Entering new market areas
  • Accelerating growth and back filling organic growth gaps
  • Better utilizing operating efficiencies / specialty resources

In our view, the most effective tactics in acquisition target development include a multi-level and joint endeavor, using the national approach that STG provides in concert with the “boots on the ground” local market intelligence that only the client has access to. STG provides Registered Buyers a number of additional tools to access the 90% of the sellers that are not openly communicating their intention to sell.

The listings below are a sample of some of the agencies discovered through our research or provided to us during the last 30 days. Upon request, we provide our Registered Buyers access to the previous month’s listings as well as off-cycle listings.

SHOP B – Baton Rouge, Louisiana– A nine-year-old independent Life, Annuity, LTC and Trust business is now for sale. The book is made up of 1000 clients and has $25M going into surrender. The sales focus had been estate planning so this has a large cross selling opportunity into Annuities and Life Insurance. Primary markets are Athene, American Equity and National Western. Asking Price $150K / Estimated Annual Revenue $125K

SHOP C – Houston, Texas – A solid 20-year-old, all commercial group employee benefits agency is now for sale. This shop is located in the highly competitive Houston market place, Reported TTM revenue is $712K / Asking Price is 1.65X of Revenue. The two primary producers are willing to stay.

SHOP G – South Texas – A 35-five-year old Horace Mann book of business is now on the market. This book is made up of 80% home/auto and 20% annuity/life. Seller is producing $80K-$90K in commissions with $45K of that being in renewals. Seller has $1.7MM assets under management on the life and annuity side. Owner is will to stay on for 1 month and will sign a 2-year non-compete. Asking Price $140K / Reported Revenue $85K.

SHOP I – Phoenix, Arizona – This agency will sell quickly. An 11-year-old independent preferred personal lines P&C insurance agency is now for sale. Direct appointments with quality carriers, including Mercury, MetLife, Safeco, Travelers, Progressive, Pacific and other. The overhead is very low and with these outstanding markets, this agency would make an ideal acquisition. Asking Price $600K / Reported Revenue $270K.

Being associated with STG provides you access to the strongest array of insurance related M&A services, 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.