Magazine article American Banker

Insurance: Start-Up Distributor Buys Agencies, Hires 'Name' CEO

Magazine article American Banker

Insurance: Start-Up Distributor Buys Agencies, Hires 'Name' CEO

Article excerpt

An insurance distribution start-up led by a high-profile executive has its eye on becoming a major player in the affluent and corporate insurance markets.

National Financial Partners has spent $87 million of its $125 million in seed capital from Apollo Management to buy 28 independent insurance agencies. The agencies' combined annual earnings exceed $15 million.

And at least another 20 deals will be completed within 45 days, National Financial said. The New York-based distributor expects to have 300 financial services firms under its wing within five years and plans to go public in a few years.

Running the new company is Jessica M. Bibliowicz, the daughter of Citigroup co-chairman Sanford I. Weill and formerly the president of John A. Levin & Co., an investment advisory firm.

Ms. Bibliowicz said she was attracted by National Financial's strategy of banding agencies together for broader product offerings and pricing advantages, though granting principals continued autonomy. Principals get a stake in the earnings of their own company and of National Financial.

"The formula is incentive-oriented because what you want to do when you acquire these firms is keep them on the road to growth," Ms. Bibliowicz said.

She predicted that National Financial would appeal to customers who prefer to deal with a local business but get the product selection and price advantages of a large-scale operation. Ms. Bibliowicz called the strategy "a winning combination. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.