OFF-MARKET ‘Q2 2022
$16.2MM Prem Insurance Agency 60/40 Personal/Comm
Tulsa, OK (Tulsa County)
Seller Financing: Available if the price and deal structure is right.
Asking Price: Competitive Auction Format
Cash Flow: $1,860,000
Gross Revenue: $2,280,000
EBITDA: N/A
FF&E: N/A
Inventory: N/A
Established: 2010
Employees: Book roll is the targeted transaction scenario.
Business Description:
We are representing an independent insurance agency that is looking to complete a divestiture their overall agency. Overall the Agency has been able to show an average YoY growth of roughly 12% (from 2019-2021). Currently managing roughly ~6k policies where they are divided up as roughly – 60% personal lines (by premium value) and 40% commercial lines (by premium value); the majority of those policies (overall) being 33% homeowners and 32% standard auto (with the remainder being misc. lines of business).
As a relatively high commission agency, they have been able to develop very strong carrier relationships (the majority of which being direct carrier relationships) where they are able to yield a strong average commission rate of greater than 14%.
For a large-scale producer this poses as a very strong opportunity for cross selling the current agency and roll-over opportunity for gaining a significant number of clients / premium and large-scale clients within commercial lines.
Additional bullet points on Agency:
• Average policies per customer – 1.9
• Average premium per customer – ~$5k
• Average premium per policy:
o Personal – ~$2.5k
o Commercial – ~$4.7k
• Top carriers for the agency are as follows:
o Safeco – 26.39%
o Hanover – 14.55%
o Progressive – 11.13%
o Travelers – 8.25%
o ASI – 7.11%
o Mercury – 2.66%
• $16.2MM total Policies in Force (aka PiF)
• 6,181 total policies
• 60% Personal lines: 40% Commercial lines
• Breakdown of book:
o 33% home
o 32% standard auto
o remainder are misc. lines
• Strong carrier relationships – the majority of them being direct carrier relationships
• Agency is operating @ avg. ~14% commission rate across all carriers
• Strong opportunity for cross selling
NDA needed for offering comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.
Detailed Information:
Facilities:
N/A
Competition:
Yes
Growth & Expansion:
Abundant growth opportunities, book is literally collecting income and strong potential for cross sells with the right agency and relationships, and bundle policies (if possible).
Financing:
Depends on structure.
Support & Training:
As needed.
Reason for Selling:
Retirement.
OFF-MARKET-Oklahoma 16MM Premium Insurance Agency for Sale
