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Non-public Fairness-Backed Insurance coverage Distributors Are Nonetheless Buying


What You Must Know

  • Greater than 4,000 impartial companies are nonetheless on the market.
  • One vendor turnoff: Weak gross sales and income.
  • One other turnoff: Foggy monetary reporting.

One of many non-public fairness leaders supporting an unlimited wave of life, well being and annuity company purchases says the patrons nonetheless have money they’ll use to make offers.

Edward Shahnasarian, a managing director within the Monetary Expertise & Companies space at Thomas H. Lee Companions (THL), estimated Tuesday, in an e-mail interview, that firms like AmeriLife have acquired about 200 to 300 U.S. insurance coverage companies and brokerage companies prior to now few years.

That leaves about 4,000 to five,000 impartial companies obtainable for buy, Shahnasarian famous.

“The vast majority of the remaining companies could possibly be good matches for acquisition by an current massive, PE-backed platform like AmeriLife,” Shahnasarian mentioned.

What It Means

When you’ve got a profitable company you’d wish to promote, you should still be capable of discover patrons.

THL

THL is an funding agency that has raised about $35 billion in capital and used the capital to put money into about 170 firms. The funding targets have used money from THL and different sources to make about 600 extra offers with a complete worth of greater than $250 billion.

Shahnasarian has helped THL oversee its relationship with AmeriLife, a Clearwater, Florida-based distributor that has grown quickly via acquisitions. AmeriLife now has relationships with about 300,000 brokers and advisors, and the RIAs in its community have $7.5 billion in property below administration.

AmeriLife opponents embody Integrity Advertising and marketing, Simplicity and NFP.

Shahnasarian additionally helps to supervise THL’s relationships with Hightower Advisors, an RIA agency, and Hexure, an organization that develops gross sales and illustration programs for annuity issuers and different varieties of monetary companies firms.

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