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Friday, December 1, 2023

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

What You Must Know

  • Greater than 4,000 unbiased 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 will use to make offers.

Edward Shahnasarian, a managing director within the Monetary Know-how & Providers 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 corporations up to now few years.

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

“The vast majority of the remaining corporations may very well be good matches for acquisition by an present massive, PE-backed platform like AmeriLife,” Shahnasarian mentioned.

What It Means

You probably have a profitable company you’d wish to promote, you should still have the ability to discover patrons.


THL is an funding agency that has raised about $35 billion in capital and used the capital to spend money on 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 by means of 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 rivals embrace Integrity Advertising, Simplicity and NFP.

Shahnasarian additionally helps to supervise THL’s relationships with Hexure, an annuity illustration system firm, and Hightower Advisors, an RIA agency.

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