Special Section sponsored by TMPAA

Brooke Capital Advisors

Specializing in loans and analysis for the insurance industry

Founded in November, 2005, Brooke Capital Advisors quickly made its presence known in the insurance lending industry. Since its inception, the company has successfully originated $178 million in insurance-related commercial loans on behalf of Aleritas Capital Corporation (formerly Brooke Credit Corporation), which has more than 20 years of experience in insurance lending.

Brooke Capital Advisors has also organized a strong management team, established business systems, seasoned its portfolio and created a marketing presence that positions the company for growth—all in less than three years of operation.

Brooke Capital Advisors brings a very “boutique” approach to the market. The company looks for established insurance entrepreneurs with strong industry experience. Overall, the Brooke management team has more than 100 years of insurance experience, including CPA and CPCU designations. This “real world” experience gives the team an understanding of the unique nature of its clients’ business, a benefit genuinely appreciated by clients.

The company’s lending program focuses on managing general agencies, insurance holding companies, risk-bearing entities and program administrators. Brooke beams its efforts on lending to small- to moderate-size businesses whose loan requirements are often too small for Wall Street.

A key component of the lending program, among several other factors, is evaluating nonregulated revenue for debt service capability. This revenue is important because it is the cash source that’s outside of insurance company operations. Like many other forms of risk-bearing entities, insurance companies are regulated by state jurisdictions. Distribution of profits is not available for debt service without regulatory approval. Insurance companies also cannot directly incur significant debt, as the assets of the company are available without reservation to satisfy policyholder claims. Given this “hands off” nature of insurance company assets and profits, Brooke does not include those profits in evaluating the debt service capability. However, the company does recognize the collateral value of such entities.

Brooke believes in entrepreneurs who are engaged in distribution and/or other insurance industry services. Historically, the innovation and execution of ideas within the distribution channel has led to product development and the capture of niche marketing opportunities. Brooke is convinced that true innovation, which is essential to every industry, exists at the entrepreneurial level. There is a specific need for capital to meet the growth objectives of the targeted market, without incurring dilution of the owners.

Brooke’s marketing activities are firmly relationship focused and rely heavily on qualified technical expertise. The expertise required to mutually construct a business deal is extremely important and is often exhibited early in client contact to establish credibility of the management team’s skills. Clients need a partner they can trust, one who understands their unique insurance business model. That’s precisely what Brooke does-as one of their valued business partners recently confirmed:

“My company needed increased capital to take advantage of opportunities to acquire additional business in the Florida marketplace. We needed an advisor who was knowledgeable about the unique aspects of the insurance business in Florida and who could complete a transaction quickly. Brooke Capital analyzed our needs in a professional manner and proposed a comprehensive solution to our problem, which they were able to implement in the short time required. I would recommend Brooke Capital Advisors to other companies in the insurance industry.” Locke Burt, President, Security First Insurance Holdings

Brooke Capital Advisors is a people business. The experience of their team, with its strong background in insurance and banking, is what drives their success. *