Insurance Shell Company Transactions

Insurance Shell CompaniesMerger & Acquisition Services is considered by many to be the trusted source for insurance companies and agencies that seek to start up an insurance carrier operation, expand their geographic footprint, or enter the US insurance market via a Shell Insurance Company acquisition.  M&A continues to be a leader in helping companies divest and/or acquire Insurance Shell Companies throughout the United States and abroad.

 

 

 

Insurance companies continue to select Merger & Acquisition Services to assist with shell transactions based on the following factors:

  • The firm has successfully completed over 100 Insurance Shell Company transactions over the past 18 years; including Property & Casualty Insurance Shells, Life & Health Insurance Shells and Non Admitted (Excess & Surplus Lines) Insurance Shell Companies
  • M&A brings a team of senior financial advisors who can assist in all matters of a transaction versus many “one man” shops
  • M&A maintains one of the largest proprietary database of industry contacts and Insurance Shell Companies, which has been developed over our 18 year history of operations
  • Use of M&A’s Electronic Data Room
  • M&A is one of the few boutique investment banks within the insurance sector which operates an affiliate licensed broker-dealer (Merger & Acquisition Capital Services, LLC.) for the benefit of our clients

Reasons to Sell an Insurance Shell Company might include

Deleverage and increase surplus Reduce expenses Exit a nonviable line
     
Avoid liquidation Tax consequences Refine corporate focus

 

  •  Insurance companies typically look to sell a company as a shell to streamline their corporate structure and reduce operating overhead and expenses. Selling a non operating company as a shell eliminates the need to maintain quarterly and annual statements, regulatory filings and triennial exams
  • In addition, the costs associated with merging and or liquidating a shell typically meet or exceed the costs associated with selling the company, however, these options do not maximize the embedded value of licenses

Reason to purchase a Shell Insurance Company include

Expand business
to new territories
Expand lines of authority Create new distribution points Adoption of a new
Business / Sales  Plan
 Start-up business  Fulfill Seasoning requirements  Acquire blocks of business  Fronting

Purchase a Shell Insurance Company vs. forming a new company de-novo?

 

  • Purchasing an Insurance Shell Company provides a quicker time to market – typically 90 days versus a year or more when starting from de-novo
  • Adding additional states via applying through a new company takes several years due to seasoning requirements in various states, where with an Insurance Shell Company acquisition, typically most licenses transfer at the time of sale
  • Department of Insurance approval is typically only needed in the state(s) of domicile when purchasing a Shell Insurance Company

M&A maintains an active listing of available Insurance Shell Companies on our Active Projects Page which can be accessed by qualified parties who register with M&A.  In addition, our team is available to discuss the process of buying an Insurance Shell Company or the phases involved in selling an Insurance Shell Company.  Please contact an infoatmaservices [dot] com (M&A Advisor) to learn more about either process.

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