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

What You Must Know

  • Greater than 4,000 impartial companies are nonetheless on the market.
  • One vendor turnoff: Weak gross sales and earnings.
  • 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 consumers nonetheless have money they’ll use to make offers.

Edward Shahnasarian, a managing director within the Monetary Expertise & Providers space at Thomas H. Lee Companions (THL), estimated Tuesday, in an electronic 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 impartial companies out there for buy, Shahnasarian famous.

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

What It Means

If in case you have a profitable company you’d wish to promote, you should still have the ability to discover consumers.


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 by 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 embrace Integrity Advertising and marketing, 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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