How to Sell a Health Book of Business

[USCov]

Hi all I am new to the forum. My father and I started a health insurance business a few months back. It was our first foray into the insurance business, originally coming from agriculture. In the last few months we have come across a few different opportunities to get back into farming and its something we would really like to do. Originally we were just planning on retaining our book of a little over 400 health policies, some with life and dental. We are worried though that we wont have time for retention so we made the decision to sell the book.

Since that time we've had a slew of business brokers ofcourse promise us the world only to deliver very little. We come to the realization that we need to be aggressive in valuation but what is the best way to find a buyer? Anyone sold a health and life book in the past with some advice? Thanks a lot.

 

[moonlightandmargaritas]

You started it "a few months back", have over 400 policies in force, and want to go back to agriculture?

Something doesn't smell quite right...

 

[Crabcake Johnny]

Servicing 400 health insurance policies will take next to zero time out of your day. Maybe you'll get a random call once every few weeks. Why sell?

 

[HealthGuy]

This guy is on crack

 

[JosephDeacon]

I doubt you will find a buyer for a health book due to the current market uncertainty. Good luck to you.

 

[dgoldenz]

I doubt you will find a buyer for a health book due to the current market uncertainty. Good luck to you.

x2. I'd give you 3 months worth of commission for it....cuz that's about what it's worth these days.

 

[njh_lfg]

You would be lucky to get 1.5x annual comp (especially with uncertainty in health insurance market moving forward). Better to just not service it and let them slowly fall off the book as you would more than likely make more money.

What is the monthly comp? Are all the life plans rolled into the health plans that pay ongoing comp?

 

[JosephDeacon]

If you wrote 400 health policies in a few months, that is darned good!! That is two approved applications per day!

 

[AgencyEquity]

Hi all I am new to the forum. My father and I started a health insurance business a few months back. It was our first foray into the insurance world, originally coming from agriculture. In the last few months we have come across a few different opportunities to get back into farming and its something we would really like to do. Originally we were just planning on retaining our book of a little over 400 health policies, some with life and dental. We are worried though that we wont have time for retention so we made the decision to sell the book.

Since that time we've had a slew of business brokers of course promising us the world only to deliver nothing. We come to the realization that we need to be aggressive in valuation but what is the best way to find a buyer? Anyone sold a health and life book in the past with some advice? Thanks a lot.

Your book is not established and not worth as much as you think it may be worth. You have already seen the early signs that business brokers do not want to even touch it. Based upon your expectations of what you think you have a hot property, you don't and this is something you will have to reconcile before you even think if selling it (in other words, lower your expectations). Also with healthcare reform, any health book, let alone one that has been around for a few months, is not that desirable. One last note, Insurance Agencies are specialized practices and those who want to sell their insurance agency or book should use a broker that specializes in insurance agencies. You can find a list of these brokers on AgencyEquity.com linked below.

 

[LGilmore]

Why not just keep your license and service what you have? Your expenses would be nominal and service isn't that difficult.

But I'm with moonlight on this one... very fishy.