Looking for a buyer.
Four partners in the commercial insurance space joined forces in 2020 to offer a competitive tech enabled commercial insurance wholesale solution to retail brokers. By utilizing a proprietary rating system, the Company enables retail agents to rate, quote, bind, and issue most commercial insurance policies in real time. The partners acquired a small book of business in late 2020 to get started, quickly signed up about 100 brokers at the beginning of 2021, and has been growing steadily since with a current roster of over 600 brokers in 17 states. Workers Comp represents just shy of 70% of the current book of business, with the balance in general liability and other P&C products. The largest carriers for this book are Atlas General, Topa, Amtrust, and Employers Insurance Co. All four partners run other businesses and have found that adding this additional company to their combined portfolios has required more effort than they bargained for. However, the proof of concept is clearly there, as this still new company shows that it is possible to offer one-click binding for commercial products, and that there is a demand for it among retail brokers. As a small wholesaler, this Company has negotiated commission percentages from carriers that are not as good as many more established wholesalers can get, and so an immediate opportunity exists for a Buyer to increase – potentially double or triple – their net commission income from this book from day one. This is a great opportunity for the right strategic buyer. Two employees came with the Company when it was purchased in 2020 and may want to continue with the Buyer if desired. NDA is required to secure comprehensive Confidential Information Memorandum (CIM) crafted by ProNova Partners. Detailed Information Facilities: No facilities. Everyone works remotely. But you’d never know. Competition: While commercial insurance wholesalers are everywhere, none of the big players offer the one-click experience that this Company can offer. Growth & Expansion: Realize an immediate growth in income by rolling this book to your own carrier codes and taking advantage of better commission percentages (see CIM for analysis). Utilize the proprietary software to grow your entire book of business by signing up existing retail agents and continuing to reach out to agents and brokers who haven’t yet been appointed with you. Financing: TBD if structure and terms are acceptable. Support & Training: As negotiated – Seller will include with the sale support for the book roll and for getting started on the rating software. Reason for Selling: All four sellers have other businesses. One is nearing retirement.
Westlake Village, CA, USA
Westlake Village, CA, USA
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