Confie Seguros’ president wants it acknowledged that the agency produced excellent on its promise a 12 months-and-a-half ago to up its acquiring spree and increase into standard personalized and tiny industrial lines, all while broadening its demographic from becoming primarily a Hispanic centered firm.
It might be that he’s strutting, but he also likes to broadcast his agency’s purchasing spree because it helps carry prospective acquisitions his way – on a weekly, if not everyday basis, he says.
The promise was made by Confie President Mordy Rothberg right after the Buena Park, Calif.-based mostly insurance company was purchased by ABRY Partners near the end of 2012.
The Boston-based private equity company acquired a bulk of the equity in Confie from San Francisco, Calif.-based Genstar Capital. ABRY focuses on business and data providers, media, and communications investments. Considering that 1989, ABRY has completed more than $ 36 billion of leveraged transactions and other personal equity and mezzanine investments, representing investments in roughly 450 properties.
The promise of wonderful growth from the president was too extended of a bet when he produced it. Development is all Confie Seguros has identified considering that its inception in 2008, building up to nowadays what can be deemed a huge portfolio.
Given that its acquisition by ABRY the firm has grown from $ 200 million in revenues and 300 offices to $ 300 million income and 540 places. The firm is now in 17 states.
“We’re approaching $ 25 million in premium in the common lines,” Rothberg said. “We’ve seen exponential growth in our business. Our pipeline to date has never ever been stronger.”
Confie has more than $ 830 million in premiums, with the overpowering bulk in personalized lines.
In March Confie announced a deal to get Ida Tunnell Insurance in Marble Falls, Texas, close to Austin. That offers Confie 120 complete offices in the state.
Confie is not along. A handful of large companies have been on a buying spree for the previous 2 many years.
Marsh & McLennan Company LLC in the final handful of months has obtained numerous firms, such as San Diego, Calif.-based Barney & Barney LLC, including $ 25 million in revenue and 500 employees to its ranks. USI Insurance Providers earlier this year agreed to acquire 42 of Wells Fargo’s insurance coverage brokerage and consulting offices.
A report issued earlier this yr by Frost & Sullivan showed the sized of M&A discounts in the house/casualty industry began developing final yr. The report states that M&A action declined in deal volume but there was an enhance in regular deal worth in 2013.
Rothberg of course likes to credit his management crew for the speedy growth, but he said the optimistic suggestions that the principals in their acquisitions are ready to provide for Confie is the driving force behind Confie’s company buying momentum.
“We’ve carried out 60 acquisitions and we have 60 references,” Rothberg said.
A reason for that, Rothberg stated, is that the company doesn’t consider the identical approach to acquiring other firms each time.
“We don’t have a cookie-cutter approach to our acquisitions,” Rothberg said, incorporating that the way in which offers are structured depends on the demands of the vendor.
Having lots of cold, difficult mullah to plunk down on obtain also aids.
“We are a income buyer,” Rothberg explained.
But an additional trend Confie has in its favor is that there are couple of competitors in the marketplace for small personal lines companies. That leaves handful of options for sellers who want to get rid of their organization or money out.
“It’s up to the entrepreneur to sell to us or to hold their business,” Rothberg said.
Confie has also pushed into standard lines and little business.
“We’ve truly grown on that side of the enterprise,” he said.
Confie has expanded into not just nonstandard but standard preferred tiny industrial agencies.
“We consider that’s going to be a growth area for us,” he said.
Look for this kind of acquisitions for the rest of 2014, according to Rothberg.
“I’m a lot more optimistic right now than I was last year at this time,” Rothberg stated. “More agencies are approaching us about partnership possibilities. We will be acquiring a lot more than more than $ 50 million in revenues for 2014.”
In accordance to Rothberg, he’s getting approached weekly or occasionally daily by company owners.
Rothberg wouldn’t say how much Confie pays for companies on common, but stated the company does spend a aggressive value, and he wouldn’t deny Confie has overpaid on event.
“Obviously, the amount of deals that we’ve completed, we really do not consider each and every nickel off the table,” he mentioned.