Multi-lines, independent agency RightSure Insurance Group announced earlier this week its acquisition of Chaparral Insurance Agency was finalized in early March.
RightSure’s president and CEO, Jeffrey Arnold said both companies were focused on preferred business for preferred clients.
“We cover the smaller, one to five person shop, highly preferred clients and we try to consolidate those into a preferred operation,” Arnold said.
The venture in Chaparral, the pricing details of which are not being made public, is the twelfth acquisition RightSure has made in its history.
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Tuesday’s purchase, along with the previous 11 buys RightSure has made, all carried the similarities of “home, auto, multiple products that we would serve well,” Arnold said.
“We have a highly-educated group of private clients, underwriters and policies to service people and if we can align those with agencies who are looking to sell or retire, then that makes sense.”
“We were born independent, we breathe independent, we are independent,” Arnold added about RightSure, illustrating that Chaparral wouldn’t meet restrictions on client pools.
His advice for agencies looking to acquire or get acquired was remembering monetary cost is only one consideration.
“Find a partner that makes sense,” he suggested. “I know the valuation and the take-home income is important, but there are secondary and tertiary items that make just as much sense.
“Is there synergy between the people acquiring and the customers? Because hypothetically, if you have a non-standard shop that buys a preferred business, they talk the same, they don’t act the same, they don’t deliver the same levels of service. Make sure there’s some synchronicity there.”
