Insurance Agents Brokers Mergers （保险代理人和经纪人合并）.pdf

U.S. RETAIL INSURANCE DISTRIBUTION INDUSTRY Market Commentary - October 2012 Insurance Agents & Brokers – Mergers & Acquisition Activity is Accelerating Insurance agents and brokers in the U.S. are benefitting from the beginning of a long-awaited hard market, a slowly improving U.S. economy, and increasing complexity in the health and benefits markets. Consolidation – long a path for revenue growth in the industry – continues at a heated pace, as strategic buyers and private equity backed players rush to grab share ahead of rising P&C pricing. Additional private capital is eagerly seeking entry, providing a floor on valuations. Insurance agents and brokers with revenues in excess of $30 million are in high demand, allowing acquirers to efficiently add scale, augment leadership, extend geographic reach and increase product breadth. Several recent large transactions highlight strong demand for well-run properties of size among strategic buyers and private equity firms. Independent, privately-held consolidators, on the other hand, continue to take a more moderate approach to acquisitions. Commercial banks are evaluating their commitment to the industry; at least ten banks have exited the industry in the past five years.  Market tailwinds are driving improved operating performance and increased consolidation activity among insurance distribution firms.  Timing of P&C cycle, strong demand for mid-size properties, financial strength of consolidators, and recent transaction multiples make this an opportune time for owners of well-run firms to consider selling.  Despite increased consolidation activity, over 40% of industry revenues are controlled by companies with less than $10 mil