Independent Agency Sales Alert – April 2016 Edition

Welcome to the April 2016 edition of your STG 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 2016. The seller’s market continues; however, we have seen continuing evidence that buyers are being rational with their purchases and over-valued agencies are setting in the market wanting for buyers.

P&C Insurance market capacity continues to be very robust, with enduring soft market conditions expected. Rate decreases are being seen for some P&C lines of insurance. Lower-than-usual catastrophe losses have contributed to overall soft 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 agencies discovered through our research and telemarketing 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 B: Far Eastern New Mexico – A well-established independent insurance agency is now for sale. Agency is 90% standard and 10% non-standard general lines. 100% growth in 5 years. Great location with strong walk-in traffic. Major insurance markets include Hartford, Travelers and Safeco. Asking Price $150K / Reported Revenue $70K.

SHOP C: North Central New Jersey – An 18-year-old insurance agency is for sale. This company is focused on larger commercial lines (97%) with a specialty in habitational insurance coverages. The dominate location is based in New Jersey with a satellite location in Las Vegas, Nevada. Expenses will go away. Carriers include Travelers and Hanover. Asking Price $750K / Reported Revenue $325K.

SHOP F: San Antonio, Texas – A six-year-old personal lines agency in San Antonio is on the market. The agency holds appointments with 27 carriers and focuses on auto and home insurance. Two locations. Most of the business is non-standard (90%) with some standard business. Asking Price $375K / Reported Revenue $271K (includes fees).

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.