Confie deal affects 48 area agencies
Confie Seguros. of California, has acquired Affirmative Insurance Holdings Inc.’s 195 insurance agencies in nine states — including 48 USAgencies offices in Louisiana.
The deal includes $100 million in cash; Affirmative, of Addison, Texas, could receive an additional $20 million, according to Affirmative’s filing with the Securities and Exchange Commission.
“We think there’s a tremendous opportunity for us in Louisiana to expand and to grow the market share, both organically as well as externally through acquisitions,” said Mordy Rothberg, Confie Seguros president and co-founder.
Confie Seguros plans to retain the 500 people employed in Affirmative’s retail arm.
In addition to the Louisiana locations, Confie Seguros acquired agencies in Alabama, Illinois, Indiana, Missouri, Kansas, South Carolina, Texas and Wisconsin and two premium finance companies.
The Louisiana employment numbers were not available.
USAgencies has six agencies in the Baton Rouge area, six in the New Orleans area and six in Lafayette and the surrounding area, according to the USAgencies website.
Confie has been on an acquisitions tear since its founding in 2008. The company is owned by ABRY Partners, a private equity firm in Boston. The Affirmative deal lifts Confie to 550 locations in 16 states.
The company, which originally targeted Hispanic consumers for higher-risk auto insurance, had $200 million in revenue in 2012.
Confie expects to end 2013 with $300 million in revenue and to boost that number to more than $500 million within the next three to five years.
Rothberg said Confie is now looking to extend its reach to what’s called the “standard auto” market, or lower-risk drivers, as well as coverage for homeowners and small commercial properties.
“Traditionally, how we’ve grown into other lines is through a lot of acquisitions,” Rothberg said. “We have to find the right acquisition partner, and we have to find the right target.”
New lines of business could provide a growth opportunity, he said.
Rothberg said Confie has a major advantage now that it didn’t when it started: credibility.
“We have acquired 60 agencies since 2008. I believe the insurance market is a very small world, and the fact that we do what we say and say what we do …. We have a bunch of references,” Rothberg said.
Confie has acquired agencies from people who were in the business for decades and wanted to retire.
The company also has acquired businesses that have plateaued but whose former owners want to stay on.
“Our expertise is sourcing deals, closing deals and integrating deals. We have the credibility and resources to grow to the next level,” Rothberg said. “I think we can.”