Buying a P&C Captive - Best ?

Aug 14, 2015

  1. mkmaem
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    mkmaem New Member

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    I am looking to transition career wise and have the resources to look at purchasing an agency . given that I don't have any of the experience in the insurance industry ( although I do in finance ) and am only now doing my p&c licensing , I've decided to not go the route of
    being a producer but to look at buying a Captive agency and have them
    train me - get me started . Sticking with this game plan - While I understand their are a few variables to consider as I explore Insurers, such as ( Brand name , Training , Competitive product offering - ie ability to bundle , strong underwriting or pricing ( yes this can change ) I have come to the conclusion that the other two determinants for the Captive id like to purchase would be (1) best payouts / highest percent + renewals (2) where you own the book and can sell it upon retirement . At this stage I am only familiar with All State ... Any suggestions on other Captive Insurers I should consider ? Thanks
     
    mkmaem, Aug 14, 2015
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  2. nyc2phi
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    nyc2phi Guru

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    Where are you located?

    If you were to look captive I've always thought Nationwide was a good option. I don't think people on here will have a lot of good to say about Allstate.
     
    nyc2phi, Aug 14, 2015
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  3. cgreene
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    cgreene Guru

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    I think Farmers might do this
     
    cgreene, Aug 14, 2015
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  4. indienoise
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    indienoise Guru

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    Are you looking for a captive to teach you the insurance business, then go indy, or are you wanting to stay with the captive for your career?

    If you're looking to go indy eventually, just get a job as a producer at just about any outfit-whoever is competitive in your area and pays decent. You'll have a non-compete with both the carrier and the agency to deal with, so it would be ideal to work for someplace that ISN'T located in the town you live in or will be doing business in eventually.

    If you want to make a career of it with the company, it's going to be hard to beat Nationwide. I was a 1099 producer for a Nationwide agent, outside of his office prior to going independent.

    If the rumors I hear about commission at Allstate and State Farm are true, then you're going to have a hard time beating the compensation you'll get from Nationwide. No captive lets you really own your book, you normally just own a financial interest in it - meaning you can sell, but only on their terms. Their brokerage, III (going to be called NBS soon), has a wide range of markets which is great for business Nationwide doesn't have an appetite for. Once your book is over 1mm I believe, they let you start writing competing business, through the brokerage, for price's sake as well. Your brokered business can't be over 25% of your book. You don't own that book, but they do buy it back from you if you leave on good terms, at less than market value though.

    I thought long and hard about sticking and making a career with Nationwide, but ultimately went the independent route. I don't have any notable negative things to say about them, so if you're going to be captive, it's the way I'd go.
     
  5. insurance1822
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    insurance1822 Guru

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    If you decide to go captive (please...please don't..) then I would go Nationwide 100% hands down.
     
  6. jkearns
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    jkearns Expert

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    With Farmers Insurance you can go captive, but then have to oppourtunity to broker outside business, which Farmers doesn't write, declines, and non-renews. Continue on being a independent in your non-resident states. Big bonus is, that you own your book, after you have reached a specifc point when working with Farmers or you purchased an exisitng agency. I bought my agency.
     
    jkearns, Aug 15, 2015
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