How to Sell a Health Book of Business

[Josh]

What's so fishy about someone having unusually great success then wanting to cash out when they could just simply take the renewals and tell any clients to go call the carrier with any questions? I know that when I've successfully developed a renewal stream, I'm always interested in selling it so that I can't enjoy the results of my labors.

 

[GreenSky]

I call BS on this entire thread. 400 clients in only a few months?

Let me repeat....BS.

Rick

 

[USCov]

I call BS on this entire thread. 400 clients in only a few months?

Let me repeat....BS.

Rick

Let me clarify a few things. We have been in business for a little over a year and a half so "a few months" was definitely the wrong choice of words. We had between 6 and 12 agents throughout that period. As far as why we want to sell it, we as owners don't want to do the retention ourselves so it will require having someone on staff which is not interesting to us.
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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...

We have been in commercial ag for over 30 years. We have been in insurance for 18 months. Frankly we are far better at farming then selling insurance.

 

[USCov]

I call BS on this entire thread. 400 clients in only a few months?

Let me repeat....BS.

Rick

Also I'm not sure what I would have to gain by making this up? I'm simply looking for help, I have spoken to multiple business brokers. Are there any that specialize in agencies?

 

[Josh]

Not really. In some ways you're trying to sell a lottery ticket.

 

[USCov]

Not really. In some ways you're trying to sell a lottery ticket.

How is that? Insurance books are sold every day yet mine is a lottery ticket?

 

[Josh]

How is that? Insurance books are sold every day yet mine is a lottery ticket?

Yours is a new health insurance book of business. Surely you've heard that there has been some debate as to what the fate of the health insurance industry in this country will be over the next few years, no?

If you had a property and casualty book, that's a different story. With a very new book of business and it's also difficult to accurately gauge persistency.

There are a lot of moving parts on what you're pitching.

 

[USCov]

Yours is a new health insurance book of business. Surely you've heard that there has been some debate as to what the fate of the health insurance industry in this country will be over the next few years, no?

If you had a property and casualty book, that's a different story. With a very new book of business and it's also difficult to accurately gauge persistency.

There are a lot of moving parts on what you're pitching.

I think although the fate of the health insurance industry may be debatable, its existence is certain for some time. For what its worth I will also be selling 150,000 leads which we paid between $2.00 and $2.50 for. I think for the right person who is in the business who can benefit from immediate added clientele as well as the leads for less than 10c on the dollar, its a hell of a deal.

 

[FL P&C Broker]

What are the yearly gross commissions and what are you asking for the book?

 

[shepnerd]

Yep, what are the details?

What states are the clients in? What is the total commish and how much are you looking for?

If the price is right the agency I'm at might gamble, but it'd have to be a deal...never bought a health book, but the boss is buying up P&C and in expansion mode.