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Target Markets Program Administrators Association Vendors Mystic Capital Advisors Group, Inc. Program administrators, managing general agents, and wholesale brokers are always looking for growth opportunities within their own markets. Designing new specialty programs, seeking out those carriers that are looking to underwrite new program business, and reacting to changing market cycles are among the challenges that they face every day. However, while these professionals are dealing with the nuts and bolts elements of program administration, there are other considerations that need to be addressed, considerations that often require the expertise of an outside advisor. Some of these considerations include: merger and acquisition opportunities, perpetuation and succession planning, business valuation, due diligence, industry benchmarking, and independent analyst coverage. With offices in New York City, Dallas, and Charlotte, Mystic Capital Advisors Group, LLC, has become recognized as a nationally focused consulting organization offering a wide range of financial advisory services to the insurance industry and the financial services sector. In the area of mergers and acquisitions, for example, Mystic Capital “led the pack” among deal advisors in terms of both the number of deals and the reported deal value for transactions in the first half of 2006, according to S&L Financial. The firm is credited with advising on seven deals worth $108.0 million in 2006 alone. “Our clients include program administrators, wholesalers, MGAs, insurance companies, retail brokerages, agencies, banks, and venture capital firms,” says Matt Klossner of Mystic Capital. “We do about 45% of our business for managing general agents and wholesalers, 45% for agents and brokers, and 10% for insurance companies,” he says. “We’ve carved a strong niche among wholesalers, MGAs, and programs administrators,” says Kevin Donoghue, managing director of Mystic Capital. “These specialists in the insurance distribution chain are battling day in and day out for business. But when it comes to getting solid consulting advice, they can’t always rely on retail insurance consultants or insurance company advisors, who often lack the detailed expertise and experience to know how these industry middlemen operate.” Mystic Capital partnered with Target Markets to successfully publish the first-ever Program Administrators’ Benchmarking Survey in 2003 and then followed up with an updated survey in 2005, according to Klossner. “The survey gives insurance program specialists, wholesalers, and MGAs the opportunity to compare their operations to those of their peers in several key areas, including: income and expense, risk management, programs and specialties; policy administration; technology, systems and automation; marketing and advertising; and personnel and compensation,” says Klossner. “Recently, we are seeing increased interest in the program management sector from a merger and acquisition perspective,” says Donoghue. “Existing MGAs and wholesalers are competing with agents and brokers as well as insurance companies for quality program administration acquisition opportunities.” More information about Mystic Capital and its services is available at www.mysticcapital.com or by contacting Kevin Donoghue at (212) 251-0972 or at kpd@mysticcapital.com. * |
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