President of AFL Groupe financier, Yan Charbonneau said unlike what happens in the property and casualty insurance distribution network, there are few candidates available to buy large life insurance firms.
“There is a lack of large consolidators in this market. Very few players can buy a practice that is worth more than $750,000,” he said.
AFL announced that it is heading into this niche that it considers wide open. AFL is also targeting smaller firms valued between $250,000 and $750,000. He observed that these organizations are constantly becoming better structured and more sophisticated.
“These companies are becoming more complex and are equipped with technological systems. You must have an administrative staff, the financial capacity and a structure to buy them," said Charbonneau. There is, however, a lot of potential buyers for firms with a valuation below $250,000, he added.
