A little over a year after launching, Fort Wayne, Indiana-based DOXA Insurance Holdings is already pursuing an aggressive expansion strategy to acquire specialty insurance firms.
More specifically DOXA seeks small to medium, independently owned and operated MGAs that have established brand recognition within their niche markets, have track records of success, and whose ownership anticipates, or is actively seeking, a business succession option without limiting or sacrificing full control of operations.
There are about 1,000 specialty insurance firms across America, and 75% of them fall under DOXA’s “sweet spot,” according to a report by The Journal Gazette. These firms earn less than $75 million a year in sales.
“Medium and small MGAs are often overlooked by firms that are actively acquiring within the insurance industry. The ‘bigger is better’ mindset prevails,” said DOXA CEO Matt Sackett in a statement.
“From our experience, there is a tremendous amount of knowledge, passion, and creativity within what the industry refers to as a ‘small MGA.’ DOXA’s goal is to partner with these smaller to mid-sized agencies, assist their growth and operational objectives with DOXA’s experience, and allow each proprietor to continue managing but with the freedom to consider his or her next steps,” he added.
DOXA is expected to be worth $50 million by year five and $125 million by year seven, according to company projections revealed by The Journal Gazette.
“At the current rate, they will hit $64 million in valuation – based on annual sales of the acquisitions – after just two and a half years in business,” the report added.
The firm announced its first acquisitions – Promont Advisors and ProPoint Claims Services – about a month after launching on April 11, 2016. Both specialize in providing insurance and claims administration for difficult classifications of business in the allied health space, along with hard-to-place religious institutions, hotels, motels, apartment complexes, and professional liability.
