Leavitt Group gears up for further expansion, aims to double revenue

Leavitt Group gears up for further expansion, aims to double revenue | Insurance Business America

Mergers & Acquisitions

Leavitt Group gears up for further expansion, aims to double revenue

Chief affiliations officer lifts lid on strategy

Mergers & Acquisitions

By
Gia Snape

As one of the top national insurance brokerages, Leavitt Group has been steadily building its business through targeted acquisitions and organic growth, expanding its national footprint while keeping a close eye on its core values.

The Utah-based firm is gearing up for more mergers and acquisitions in the Midwest, the latest of which was Elliott Insurance Group in North Carolina.

 At the same time, Leavitt Group plans to expand its footprint in the financial services sector and its employee benefits division, which currently makes up 25% of its revenue.

“We very much want to grow via acquisition, as well as organically,” said Kevin Callister, (pictured) chief affiliations officer at Leavitt Group.

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

Speaking to Insurance Business, Callister shed light on the company’s acquisition strategy and growth plans, revealing a methodical and long-term approach.

“About three years ago, we carefully targeted many Nationwide agencies. Nationwide, as a carrier, was moving these agencies into the independent market, and they needed assistance,” he said.

“As an independent broker, we strategically pursued agencies that aligned with our culture, acquiring several platform-style agencies that could operate independently within our resource platform. After those acquisitions, we began acquiring smaller agencies—spokes—that could integrate into these platforms and grow profitably.”

The acquisition of Elliott Insurance Group is a key example of this strategy in action. Elliott was added as a “spoke” agency, attaching to an existing platform agency in North Carolina.

Callister emphasized that Leavitt Group’s growth strategy is not just about financials or geographic expansion – it’s about ensuring cultural alignment with the agencies they acquire. “If there’s no culture similarity, if we can’t get along from that perspective, there’s no reason to do a deal,” he said.

The group is actively seeking opportunities to acquire both platform and spoke agencies in this region over the next two to three years, while its existing strongholds along the Eastern Seaboard also remain an area of focus.

Geography, however, is only one factor in Leavitt Group’s M&A approach. According to Callister, the group evaluates potential partners based on the agency’s business model and ability to contribute to the group’s broader goals.

Each platform agency operates as a separate C corporation, with Leavitt Group owning 60-75% of the business and the remaining portion owned by local partners. This model allows the group to maintain local expertise and relationships while providing centralized support.

“This partnership allows us to bring our expertise and back-end support while they focus on relationships,” Callister said.

Leavitt Group’s next goals: Diversifying and hitting a revenue target

Leavitt Group has also made a steady pace of acquisition despite “market turmoil” in recent years driven by rising interest rates. Unlike private equity firms, however, Leavitt Group is privately owned, which gives them more flexibility in navigating the market.

Callister highlighted that the group has been pursuing this model for decades, with the first partnership agency established back in 1959.

“Since Vicky Levitt opened the doors in 1952 and our first partnership in 1959, insurance has been core to us,” he said. “We’re bullish on the industry and confident it will thrive in its relationship-driven format.”

In terms of diversifying its business lines, Callister said: “You’ll see us build out our employee benefits side of the house,” noting acquisitions in this space are likely to play a key role in that growth.

Financial services, including 401(k) and wealth management services, are also on the radar, but Callister said this area requires a more cautious approach due to the regulatory complexities involved.

“We just hit $500 million in revenue, and our goal is to double that in the next five years, with acquisitions playing a big role. We aim for balanced growth, targeting 50% through acquisitions and 50% organically,” he said.

As Leavitt Group continues to expand, Callister said that its success would depend on maintaining its focus on culture and partnership.

“We believe that we are stewards to each of our 3,000 employees, to our vendor partners and all stakeholders,” he said. “Through his stewardship approach, we’ve built a growing, profitable business where everyone benefits. This philosophy truly defines who we are and the partners we seek to align with. It’s the core of our culture and our way of doing business.”

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