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.
Source of insurance-forums.net
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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