Book for Sale in Florida Panhandle

[NYguy]

I am looking at potentially buying a 2.2mil. book of personal lines and a 10% commercial, can anyone give me a idea of how much a book like this would go for sale in the panhandle of Florida?

Also the guy wants all cash, is that normal? If not what is usually the normal breakdown of cash and financing.

 

[FL P&C Broker]

I am looking at potentially buying a 2.2mil. book of personal lines and a 10% commercial, can anyone give me a idea of how much a book like this would go for sale in the panhandle of Florida? Also the guy wants all cash, is that normal? If not what is usually the normal breakdown of cash and financing.

If it is 90% personal lines you want to find out what is top 5 main companies are. If a lot of the policies are Citizens it would be a worth a less than a book with more standard type carriers.

 

[NYguy]

Thanks, Citizens is about 10%. What would I book like this go for as a estimate?

 

[FL P&C Broker]

Depends. Who are the other main companies?

 

[NYguy]

Peoples, Universal, Hull & Co, Tapco, United,Bankers

 

[bluediamond]

Where in the panhandle may I ask?

 

[FL P&C Broker]

Peoples, Universal, Hull & Co, Tapco, United,Bankers

Citizens is a wild card. Most of their biz is being taken out by private companies. Universal isn't my favorite company, but a necessary evil. Although people's trust hasn't had any recent problems, do a google search on them and read some of their past practices. United is a solid company, but that have never non-renewing a lot of the book in south Florida to revamp their program and rates.

 

[axeman462]

I am looking at potentially buying a 2.2mil. book of personal lines and a 10% commercial, can anyone give me a idea of how much a book like this would go for sale in the panhandle of Florida?

Also the guy wants all cash, is that normal? If not what is usually the normal breakdown of cash and financing.

although I am not experienced in buying/selling books, it is my understanding that anything in the ballpark of 2.5x the value is standard.

 

[NYguy]

Thanks.

The seller wants 100% cash, although according to him he will only be doing commercial insurance. I was under the impression you would do like 50% upfront and 50% over two years. Is that a normal ratio?

 

[FL P&C Broker]

Thanks. The seller wants 100% cash, although according to him he will only be doing commercial insurance. I was under the impression you would do like 50% upfront and 50% over two years. Is that a normal ratio?

Most owners are going to want cash. Some may hold paper but probably no where near 50%. There are companies who specialize in book financing but you are still going to have to put down 10% to 20% and have good credit.