Economic Conditions and the Impact on Program Business M&A

Wednesday, June 24 at 11 AM EDT

Heidi Strommen – President, ProHost USA (Moderator)
Matt Sackett – CEO, DOXA Insurance Holdings
Robert Kimmel – CEO, K2 Insurance Services
Kevin Donoghue – Managing Director, Mystic Capital Advisors Group

Merger & acquisition activity in the program space by program aggregators, brokers, and carriers were at an all-time high prior to the COVID-19 pandemic and the resulting economic slowdown. This activity provided a wide range of opportunities for program administrators looking to expand their capabilities as part of a larger organization, or develop a perpetuation plan for their agency.

Our panel of experts will examine the M&A impacts of current economic conditions for program administrators and what they can expect in the near and far term.

  • Are deals moving forward or are they on the sidelines waiting for better clarity on US economy?
  • How will valuations be impacted by situational, pandemic-related revenue hits?
  • How does private equity feel about the impact of lower portfolio investment yields on their ability to finance debt?
  • How have conditions impacted deal multiples?
  • Will earnouts become more important than up-front cash?
  • Is there a shift to more performance-based deals?
  • Suggestions to maximize your agency valuation in a turbulent economy.

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MattSackett  

Matt Sackett is President and CEO of DOXA Insurance Holdings. He has over 20 years of MGA-specific experience, driving dramatic growth through all phases of his career. Matt’s experience starts at a seven year-old MGA, where he grew a division from $4mil in annual premium volume sales to over $22mil. From there Matt started a specialized MGA from the ground-up, selling it 5 years later for a 40% annualized rate of return. Most recently Matt worked for a large broker-owned MGA where, as head of sales, premium and revenue growth doubled during his tenure, stopping an eight consecutive year contraction in premium and revenues prior to his involvement. During his career, Matt has had the opportunity to engage with hundreds of different MGAs and has always been impressed with both their industry specific knowledge and the strength of their teams. After selling his MGA and watching all that he built evaporate into a larger organization, and combining this with the fact that many MGA owners want to take some, but not all of their chips off the table, Matt and his business partners conceived DOXA.

     
BobKimmel  

Bob Kimmel holds the operating senior leadership position of K2 Insurance Services since its establishment in 2011. He has over 20 years of experience in property and casualty insurance. Prior to forming K2, Bob was Executive Vice President of Guy Carpenter & Company, LLC’s Program Manager Solutions Group Specialty. In this role, Bob was responsible for growing all revenues associated with Managing General Agencies (MGAs). He developed extensive relationships with MGAs and has a significant amount of experience in proactively identifying successful MGAs. In addition to MGAs, Bob maintains deep relationships with management teams of numerous issuing companies interested in program business.

Bob began his career as a reinsurance intermediary with E.W. Blanch Company in 1991. He joined Collins in 1998, where he led the opening of the company’s San Francisco office. Bob has specialized in property and casualty business, including earthquake coverage and program business, for more than 10 years. He holds a bachelor’s degree in finance from Arizona State University.

     
Kevin Donohue 2018 web   

Kevin Donoghue has spent over 30 years in various merger, acquisition and financial consulting roles. Prior to co-founding Mystic Capital, Kevin's background included starting and developing BMG Capital Advisors Group, LLC (a subsidiary of The Hartford), and four years with KPMG Peat Marwick. He has a MBA from Boston College and a B.S. in Accountancy from Bentley College. Kevin has earned the Chartered Financial Analyst (CFA) and Certified Insurance Counselor (CIC) designations and is a Certified Public Accountant (CPA). He is a member of the following: New York Society of Security Analysts (NYSSA), CFA Institute, American Institute of Certified Public Accountants (AICPA), Society of Certified Insurance Counselors (SCIC) and the National Center for Employee Ownership (NCEO). Kevin is also Chairman and Managing Director of Mystic's London based subsidiary, Mystic Capital Advisors Limited.

     
Heidi Strommen 4369 WEBSIZE 2016 crop  

Heidi Strommen is President of ProHost USA, a division of Distinguished Programs, a national insurance program administrator specializing in hospitality and real estate based in New York City. She joined ProHost USA in 1990 as Vice President of Operations and in 2008 was named company president. In 2019, ProHost USA was acquired by Distinguished Programs. She was elected to the Target Markets Advisory Board in 2011 and served a two-year term as the Association president from 2015 through 2016. 

Prior to joining ProHost, Heidi served as a policy analyst for the Minnesota Department of Commerce. She has authored articles about insuring restaurant exposures for various industry magazines including Risk & Insurance, Insurance Journal, Agent and Broker and Rough Notes and has participated as a panel member at numerous insurance conferences and events. Heidi earned her Bachelor of Arts degree in government from Cornell University in Ithaca New York. She also holds a master's degree in business administration from Metropolitan State University in Saint Paul, Minnesota.


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