INS Capital Group, a leading advisory firm to the financial services industry, announces its Agency Market Forecast for 2024.
INDIANAPOLIS, March 4, 2024 /PRNewswire-PRWeb/ -- INS Capital Group, a leading advisory firm to the financial services industry, announces its Agency Market Forecast for 2024. This past year, the team assisted both buyers and sellers in over 40 transactions representing nearly $250M in transaction value. With additional talent and resources the team is ready to assist agencies with their transaction needs. Outlined below is a forecast of where we see the Agency Marketing heading in 2024.
2024 Agency Outlook – What's Next ?
Many indicators for 2024 are getting big headlines. Inflation is trending down. The economy and employment are both cooling, unemployment increasing. Rate cuts appear in the works. Do we have a soft landing? No one is making that call. Credible concerns about a recession remain. Can business expect smooth sailing for 2024? No. It's rarely ever that easy.
Agency Growth:
Carriers calming down? Carrier responses to increases in reinsurance costs, inflation, and CAT losses have been substantial and for the most part understandable. Is there a hope that rate increases may moderate, and carrier markets may stabilize? Both would be welcomed by most agency owners. The industry is strong and stable, yet certain lines may have more recovery ahead.
GDP growth may be modest. Certain regions have strong growth. Other areas are less vibrant. Be smart about targeting resources. Growth opportunities exist for owners strategically identifying niches in their operating region or sector that have positive trends. There is ample data on www.bea.gov . It's worth drilling down on this site to gain data specific to your zip code, county, and operating region.
Here is a place to start. https://www.bea.gov/system/files/stgdppi1q23.png
M&A Trends:
Sellers are getting younger. Top dollar valuations require longer-term selling involvement and leadership. The private equity buyers have improved culturally for successful integration of the agency and the people. Savvy sellers are banking a chunk for retirement and re-upping a portion for another exit down the road with their new private equity owner.
Selectivity is apparent. Many buyers are more focused on the type of agency that is desired. Moreover, organic growth history is in high demand. That said, buyers with a generalist approach, personal lines appetite, and add on deals are active as well.
Fundamentals are on trend. Merger and acquisition aspects such as a quality book, niche business, and respectable financial history are highly valued. Licensed, experienced people with agency tenure are always in demand.
Best wishes for a prosperous 2024. We're here to help! Reach out today to get started.
About INS Capital Group
INS Capital Group is an advisory firm providing consulting and assistance with M&A transactions and capital solutions. With an extensive network of buyers, sellers, and lenders, INS Capital Group can help businesses navigate a wide variety of transactions.
INS offers buy and sell-side advisory, due diligence, valuations, perpetuation consulting, and access to capital via debt and equity options. Over the past 30 years, the team has completed over 750 transactions representing more than $4B in value with market values ranging from $1M-$250M.
INS clients are insurance agencies, wholesale brokers and insurance networks. With expanded capabilities, INS continues expansion into the Registered Investment Advisor, CPA/Accounting practices, other financial services, and main street businesses.
For more information, please visit INS Capital Group at https://www.inscapitalgroup.com.
Media Contact
Carissa Newton, CN Creative Strategy, 1 3173137455, [email protected], CN Creative Strategy
Chris McAtee, INS Capital Group, [email protected], https://www.inscapitalgroup.com
SOURCE INS Capital Group
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