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Our Expertise

Insurance Shell Transaction Advisory

Merger & Acquisition Services, Inc. is considered by many to be the trusted source for insurance companies and agencies that seek to start up an insurance carrier operation, expand their geographic footprint or enter the US insurance market via a Shell Insurance Company acquisition. M&A Services continues to be a leader in helping companies divest and/or acquire Insurance Shell Companies throughout the United States and abroad.

Insurance companies continue to select Merger & Acquisition Services, Inc. to assist with shell transactions based on the following factors:
  • The firm has successfully completed over 100 Insurance Shell Company transactions over the past 25+ years, including Property & Casualty Insurance Shells, Life & Health Insurance Shells and Non Admitted (Excess & Surplus Lines) Insurance Shell Companies
  • M&A Services brings a team of senior financial advisors who can assist in all matters of a transaction versus many “one man” shops
  • M&A Services maintains one of the largest proprietary databases of industry contacts and Insurance Shell Companies which has been developed over our 25 year history of operations
  • Use of M&A Services’ Electronic Data Room
  • M&A Services is one of the few boutique investment banks within the insurance sector which operates an affiliate licensed broker-dealer (Merger & Acquisition Capital Services, LLC) for the benefit of our clients

Reasons to Sell an Insurance Shell Company might Include:
  • Deleverage and increase surplus
  • Reduce expenses
  • Start-up business
  • Acquire blocks of business
  • Avoid liquidation
  • Adoption of a new Business/Sales Plan
  • Fulfill seasoning requirements
  • Fronting

Insurance companies typically look to sell a company as a shell to streamline their corporate structure and reduce operating overhead and expenses. Selling a non-operating company as a shell eliminates the need to maintain quarterly and annual statements, regulatory filings and triennial exams.

In addition, the costs associated with merging and/or liquidating a shell typically meet or exceed the costs associated with selling the company, however, these options do not maximize the embedded value of licenses.

Reasons to Purchase an Insurance Shell Company might Include:
  • Expand business to new territories
  • Expand lines of authority
  • Create new distribution points
  • Tax consequences
  • Exit a nonviable line
  • Refine corporate focus

Purchase a Shell Insurance Company vs. forming a new company de-novo?

Purchasing an Insurance Shell Company provides a quicker time to market – typically 90 days versus a year or more when starting from de-novo.

Adding additional states via applying through a new company takes several years due to seasoning requirements in various states, where with an Insurance Shell Company acquisition, typically most licenses transfer at the time of sale.

Department of Insurance approval is typically only needed in the state(s) of domicile when purchasing a Shell Insurance Company.

To learn more about Insurance Shell Transactions process and opportunities, contact our advisors today.

All inquiries are kept strictly confidential.

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