Selling Captive Agency in Los Angeles, California

[Jshininfo83]

Selling Farmers Insurance agency.

Book is approximately $700,000 with $80,000 renewal commission.

Owner's asking price is $80,000.

Mostly personal line with some BOP/WC.

Call this number if interested.

213-267-3590

 

[Markthebroker]

I'm just curious, can you sell it back to Farmers if you don't find any takers?

 

[marindependent]

I'm just curious, can you sell it back to Farmers if you don't find any takers?

You might be able to give it back if you want.

 

[Markthebroker]

You might be able to give it back if you want.

I'm just looking again at those numbers. 1 book with $80,000 in renewal commissions. A typical Farmers office has an agent plus one or two employees, plus rent, utilities, marketing costs. Unless I'm missing something, that operation is loosing at least a few thousand dollars a month.

So basically I would pay $80,000 for a business that makes no money. Sure there is potential, but there's a lot more potential with a profitable business.

I'm so glad I went independent.

 

[Allen Trent]

I'm just looking again at those numbers. 1 book with $80,000 in renewal commissions. A typical Farmers office has an agent plus one or two employees, plus rent, utilities, marketing costs. Unless I'm missing something, that operation is loosing at least a few thousand dollars a month.

really only a sale-able book size if an existing Farmers agent was to buy it. Otherwise, as you mention, it has no value as the minimum expenses of extremely basic overhead of office/staff will eat up all of it. factor in cancellation rate of a Farmers book of 12-18% & all the renewals will be gone in 5-7 years

 

[marindependent]

. factor in cancellation rate of a Farmers book of 12-18% & all the renewals will be gone in 5-7 years

and that is not even factoring in the potential "non renewals" due to the California Wildfire risk.

 

[Markthebroker]

I'm so glad I went independent. Wait, did I say that already?

 

[Travis Price]

I'm so glad I went independent. Wait, did I say that already?

 

[Markthebroker]

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