Question About P&C Agency Profitability

Discussion in 'P&C Insurance Forum' started by aureo11, Aug 10, 2017.

  1. aureo11
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    aureo11 Member

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    Hi all,

    I'm wondering if anyone in the forum could give me an estimate of typical P&C general agency profitability?
    One of the stocks Im invested in recently purchased a P&C insurer on the West Coast (Pacific Specialty). The purchase included a general agency that did something like $50M in commissions with Pacific Specialty.

    I wasn't able to find any data on the net profit the general agency earned on that $50M, so I'm curious what I might expect? Is a 10% margin pretty standard? 20%? 5%?

    Any insight would be appreciated as I try to value this purchase.
     
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