SOLD-Portable SoCal Homeowners Insurance Agency for Sale

SOLD ‘Q1 2020!

Rancho Cucamonga, CA (Orange County)

Seller Financing Available if the price and deal structure is right.

~PORTABLE NATIONWIDE So long as you’re licensed with CA DOI~

Asking Price: $TBA

Cash Flow: $190,000

Gross Revenue: $280,000

EBITDA: N/A

FF&E: N/A

Inventory: N/A

Established: 1970

Business Description

Homeowners & Preferred Insurance Agency Book Reaps Consistent Profits

Independent homeowner’s agency / book of business for sale – this will go quick! Excellent book with very strong retention, estimated between 90-95% annually. Approximately 2,200 policies in force with 90% Homeowners and 10% ancillary product lines, only a few current auto policies.  Cross sell bonanza is up for grabs on this acquisition.  80% of book has been with agency for 5-15 years! Total premium is approximately $3MM, commissions from carriers range from 10-15% mostly.  Company works with 12 carriers, First American (27.1%) National General (26.8% – big bonuses historically due to loss ratio history, growth, retention bogeys achieved year after year after year), Arrowhead (13.7%) Stillwater (6.3%), Pacific Specialty (6.0%) all the remaining carriers are below 3.0% of the book of business. Perfect opportunity for an established agency to add grow inventory of homeowner policies to their book of business. NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners.

Detailed Information

Employees:

1.5 to service the book of business by Buyer’s infrastructure.

Facilities:

To achieve quoted net income, would have to be a “roll-up” into an existing agency that absorbed all costs other than salaries for a senior account manager. Full recast available in the CIM after we secure the Buyer’s NDA.

Competition:

Insurance is a very competitive industry.

Growth & Expansion:

Carrier bonuses for new owner who adds to their current book of business. Very stable book with much room to expand and grow.

Financing:

If the price and deal structure is right.

Support & Training:

2 weeks, 20 hours per week. This is a renewal book that’s on auto-pilot.

Reason for Selling:

Sellers want to focus on primary captive and independent insurance agencies in another state.