Wholesale General Insurance Agency in OC – FinTech Enabled

Financial & Assets Details

About the Business

Business Description

The Company provides wholesale insurance products and policies to a network of brokers, agents and households nationwide using its tech enabled platform. From inception, this Company was created as a FinTech enabled platform by forward-thinking founders who come from the startup, wealth management, and financial planning industries. It partners with Life Insurance Brokers and provides marketing training and support, and technological solutions to partnered agents. Its products and framework are tailor made for each partner to address their specific needs and help grow the broker's book of business, driving revenue to both parties by streamlining its entire process with its technology.

As a general agent, the company’s primary business looks to partner with agents who can bring life insurance policies by leveraging their current and future relationships with clients. The Company accomplishes this by offering different leveraged products, which enable higher premium sales and funding of larger policies, as an example. In 2021, property-liability net written premiums equaled $4,455,892.49, up from $1,388,019.17 in 2020. Of the 2021 total, there were a total of 41 policies with an average commission amount of $108,680. This level of production was accomplished through six partnered brokers with the number one producer bringing in 14 (34.15%) deals and this is an example of how our services enable the higher production of our partnered brokers.

The company’s growth shows no signs of slowing, so owning this business could be the perfect solution to achieving your financial goals.

The business is based in Irvine located in a busy intersection and a highly desirable location in Orange County, CA. Office space is (1,300) Sq. ft with (2) private offices, breakroom, bathroom, supply room, reception area with several workstations, and easy access from parking lot. However, the management team works nationwide and remotely so the Company headquarters can be relocated. The ownership is completely hands off and has trained staff to manage all day-to-day aspects of the business.

The company continues to thrive and is has great potential to increase revenues through new and renewal commissions through cross sales of many of its insurance products across its network of agents and direct to consumers. A turnkey operation with tenured staff, multi agent and multi-household customers and compelling earning potential. Additional income stream available by adding additional brokers and agents nationwide which could possibly increase the general agency’s production. The agency is well established in the broker community with excellent P&C licenses staff.

The company continues to thrive and is has great potential to increase revenues through new and renewal commissions through cross sales of many of its insurance products across its network of agents and direct to consumers. A turnkey operation with tenured staff, multi agent and multi-household customers and compelling earning potential. Additional income stream available by adding additional brokers and agents nationwide which could possibly increase the general agency’s production. The agency is well established in the broker community with excellent P&C licenses staff.

According to IBISWorld, the Insurance Brokers and Agencies industry has grown over the five years to 2021, benefiting from economic growth during most of the period, in addition to favorable legislation and positive trends in the insurance sector. The industry includes insurance brokers that represent the buyer, rather than the insurance company; and agencies, which represent various insurance companies during the purchasing process. The industry is a vital component of the larger insurance sector as industry operators act as intermediaries between insurance providers and downstream clients. Operators generate income via commissions earned on policies sold. As a result, industry revenue increases as policy prices and volumes increase.

Over the five years to 2021, the industry has grown for numerous reasons. One such reason has been rising premium prices on policies sold to consumers. Despite rising premium prices, consumers have not decreased their consumption of insurance products due to rising disposable income levels and favorable legislative trends.

Over the five years to 2026, the industry is anticipated to continue its steady, moderate rate of growth as the overall economy improves following the coronavirus pandemic. Macroeconomic growth will likely lead to per capita disposable income growth during the outlook period, enabling households to afford goods that require insurance policies, such as automobiles, and generally desirable insurance policies, such as private health and life insurance. Similarly, the number of businesses is expected to increase an annualized 0.7% over the five years to 2026, likely leading to higher demand for brokerage of commercial lines of insurance. Overall, industry revenue is expected to increase an annualized 2.6% to $210.8 billion over the next five years.

Projected Revenue 2022: $ 4,300,000 / Projected EBITDA: $ 649,000

Agency Earned Premium is $ 4,455,892

Growth & Expansion

Excellent potential

Market Competition:

Company is well positioned

Support & Training

Owners will assist in the transition.

Reason for Selling:

Pursue other ventures