Insurance premium finance remains an attractive asset class for banks and independent operators. The asset class has a track record of consistently delivering strong risk-adjusted returns with low credit losses. The short average term also allows lenders to quickly adjust to a rising rate environment. In a challenging macroeconomic environment, borrowers are likely to leverage premium financing to better manage cash flow and liquidity, accelerating growth for premium finance lenders. On an aggregate basis, this group reported a 0.6% quarterly increase in outstandings and an impressive 20.9% year-over-year uptick. … [Read more...]

This Quarter Report analyzes data from the second quarter of 2022. Insurance premium finance remains an attractive asset class for banks and independent operators alike. Despite broader macroeconomic headwinds, industry loans outstanding have exhibited substantial growth. Incumbent players are growing organically with the hard P&C market and are actively seeking acquisitions. Consolidation over the past two decades has materially reduced the inventory of properties available, resulting in favorable market dynamics for sellers.  On an aggregate basis, this group reported a 12.9% quarterly increase in outstandings and an impressive 21.9% year-over-year uptick. … [Read more...]

This Quarter Report analyzes data from the first quarter of 2022. Insurance premium finance remains a great asset class for banks and independent operators. Market tailwinds are generating significant growth in assets and earnings. Incumbents are growing organically with the hard P&C market and are actively seeking acquisitions. Consolidation over the past two decades has significantly reduced the inventory of properties available, which creates a favorable dynamic for sellers. On an aggregate basis, this group reported a 2.1% quarterly increase in outstanding and a strong 23.2% year-over-year uptick. … [Read more...]

This Quarter Report analyzes data from the fourth quarter of 2021.Insurance premium finance remains a great asset class for banks and independent operators. Market tailwinds are generating significant growth in assets and earnings. Incumbents are growing organically and are actively seeking acquisitions. Consolidation over the past two decades has significantly reduced the inventory of properties available, which creates a favorable dynamic for sellers. Colonnade has either been the sell-side or buy-side M&A advisor on most of the insurance premium finance transactions that have taken place over the last two decades. These complex transactions require an investment banking team with … [Read more...]

Insurance premium finance remains a great asset class for banks and independent operators. Market tailwinds are generating significant growth in assets and earnings. Incumbents are growing organically and are actively seeking acquisitions. Consolidation over the past two decades has significantly reduced the inventory of properties available, which creates a favorable dynamic for sellers. … [Read more...]