Leavitt Group gears up for additional growth, goals to double income

As one of many prime nationwide insurance coverage brokerages, Leavitt Group has been steadily constructing its enterprise by means of focused acquisitions and natural progress, increasing its nationwide footprint whereas maintaining an in depth eye on its core values.

The Utah-based agency is gearing up for extra mergers and acquisitions within the Midwest, the newest of which was Elliott Insurance coverage Group in North Carolina.

 On the similar time, Leavitt Group plans to broaden its footprint within the monetary companies sector and its worker advantages division, which presently makes up 25% of its income.

“We very a lot wish to develop through acquisition, in addition to organically,” stated Kevin Callister, (pictured) chief affiliations officer at Leavitt Group.

What’s behind Leavitt Group’s “spoke and platform” acquisition mannequin?

Chatting with Insurance coverage Enterprise, Callister make clear the corporate’s acquisition technique and progress plans, revealing a methodical and long-term method.

“About three years in the past, we rigorously focused many Nationwide companies. Nationwide, as a service, was transferring these companies into the impartial market, they usually wanted help,” he stated.

“As an impartial dealer, we strategically pursued companies that aligned with our tradition, buying a number of platform-style companies that might function independently inside our useful resource platform. After these acquisitions, we started buying smaller companies—spokes—that might combine into these platforms and develop profitably.”

The acquisition of Elliott Insurance coverage Group is a key instance of this technique in motion. Elliott was added as a “spoke” company, attaching to an current platform company in North Carolina.

Callister emphasised that Leavitt Group’s progress technique is not only about financials or geographic growth – it’s about making certain cultural alignment with the companies they purchase. “If there isn’t any tradition similarity, if we will not get alongside from that perspective, there isn’t any motive to do a deal,” he stated.

The group is actively looking for alternatives to accumulate each platform and spoke companies on this area over the following two to 3 years, whereas its current strongholds alongside the Japanese Seaboard additionally stay an space of focus.

Geography, nonetheless, is just one consider Leavitt Group’s M&A method. In keeping with Callister, the group evaluates potential companions primarily based on the company’s enterprise mannequin and skill to contribute to the group’s broader targets.

Every platform company operates as a separate C company, with Leavitt Group proudly owning 60-75% of the enterprise and the remaining portion owned by native companions. This mannequin permits the group to take care of native experience and relationships whereas offering centralized assist.

“This partnership permits us to deliver our experience and back-end assist whereas they deal with relationships,” Callister stated.

Leavitt Group’s subsequent targets: Diversifying and hitting a income goal

Leavitt Group has additionally made a gradual tempo of acquisition regardless of “market turmoil” lately pushed by rising rates of interest. Not like non-public fairness companies, nonetheless, Leavitt Group is privately owned, which supplies them extra flexibility in navigating the market.

Callister highlighted that the group has been pursuing this mannequin for many years, with the primary partnership company established again in 1959.

“Since Vicky Levitt opened the doorways in 1952 and our first partnership in 1959, insurance coverage has been core to us,” he stated. “We’re bullish on the trade and assured it can thrive in its relationship-driven format.”

When it comes to diversifying its enterprise strains, Callister stated: “You’ll see us construct out our worker advantages facet of the home,” noting acquisitions on this house are prone to play a key position in that progress.

Monetary companies, together with 401(okay) and wealth administration companies, are additionally on the radar, however Callister stated this space requires a extra cautious method as a result of regulatory complexities concerned.

“We simply hit $500 million in income, and our purpose is to double that within the subsequent 5 years, with acquisitions enjoying an enormous position. We goal for balanced progress, concentrating on 50% by means of acquisitions and 50% organically,” he stated.

As Leavitt Group continues to broaden, Callister stated that its success would depend upon sustaining its deal with tradition and partnership.

“We imagine that we’re stewards to every of our 3,000 workers, to our vendor companions and all stakeholders,” he stated. “By his stewardship method, we’ve constructed a rising, worthwhile enterprise the place everybody advantages. This philosophy really defines who we’re and the companions we search to align with. It’s the core of our tradition and our means of doing enterprise.”

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