Buying an existing PC agency

[Gulliver]

I already have a lot of experience in this arena, but I wanted to get some opinions from the group. Right now there is a lot of turmoil in the P and C marketplace. Many agency owners are wanting out because of the extreme stress the current hard market has created. Companies are cancelling contracts with no notice and for reasons that have not been an issue historically. Companies are also completely shutting off new business. Opportunities are out there for purchasing existing agencies. I see a chance to take advantage of the "blood in the streets" scenario, but I'm also more worried than I would typically be because of the higher levels of uncertainty. Would you look at buying opportunities right now or walk away? Throw some sincere opinions out for me to chew on. Thanks in advance.

Gulliver

 

[Markthebroker]

I already have a lot of experience in this arena, but I wanted to get some opinions from the group. Right now there is a lot of turmoil in the P and C marketplace. Many agency owners are wanting out because of the extreme stress the current hard market has created. Companies are cancelling contracts with no notice and for reasons that have not been an issue historically. Companies are also completely shutting off new business. Opportunities are out there for purchasing existing agencies. I see a chance to take advantage of the "blood in the streets" scenario, but I'm also more worried than I would typically be because of the higher levels of uncertainty. Would you look at buying opportunities right now or walk away? Throw some sincere opinions out for me to chew on. Thanks in advance.

Gulliver

 

[marindependent]

Without question there are nuggets of gold out there, however they are surrounded by crocodiles and poisonous water.

As most questions on this forum fail at you fail to mention what states you are considering and what lines of insurance. I assume MO P&C - but Im not sure.

 

[Gulliver]

Without question that are nuggets of gold out there, however they are surrounded by crocodiles and poison.

As most questions on this forum fail at you fail to mention what states you are considering and what lines of insurance. I assume MO P&C - but Im not sure.

You are correct on location and lines. Thanks for the input...

 

[Markthebroker]

I've done a lot of value investing, and taken a lot of risks. Sometimes I'm wrong, and sometimes I'm right. Fortunately most of the times I've been right, I've been right big, and I'm usually not wrong. Though sometimes, I am and I lose money.

Ultimately if I'm investing at a time of uncertainty, and I think I'm somewhere near the bottom, and I have a plan to recover if I'm wrong, and I think it's good long-term investment, then I usually end up doing pretty well.