PRODUCERQUOTING

Instructions:

1. Print the policy Declarations Page in EPIC first to compare to the quote, then completely LOG OUT of EPIC and close the browser.

2. Open a new Browser session and Log Into EPIC QUOTE using your REGULAR EPIC Log In credentials by clicking this link: https://lcpicquotes.lacitizens.com/

3. Search for and open the policy to the defaulted Full History Page as you would access a policy in regular EPIC.

4. Scroll all the way to the bottom of the page, click on the ENDORSEMENT button.

5. Scroll through the endorsement screens, editing the information you would like quoted (ONLY CHANGE the information you would like updated (Example: Coverage amounts, deductible options) All other policy data should remain the same as changing this information will result in an inaccurately quoted premium)

6. Click NEXT at the bottom until you reach the Tentative Quote screen. Review and print the quote. A printable version of the quote is available at the top right corner of the screen.

7. Once your quoting is completed, you should log out of EPIC QUOTE by clicking the Log Off Button on the left menu bar and close the browser. No endorsements processed or quoted in this EPIC QUOTE Site will be processed or reviewed by underwriting staff. This site is for Quoting Endorsement Purposes ONLY.

8. Once you and the insured have decided which changes you would like to make to the policy, sign and upload a Change Request Form into the policy in REGULAR EPIC under Submission Documents. All other LA Citizens Guidelines for Endorsement processing apply and should be followed.

This information is being sent out to Agency Administrators and Principles. Please share with any office staff that you wish to process quoting.

While valuations of independent agencies might have leveled off, owners can still get a good price for their business if they have attractive cash flow and other positive attributes.

Recently, private equity (PE) firms have slowed their rapid pace of insurance agency acquisitions and some buyers have even hit the pause button. It is unknown if this is a case of indigestion or lack of capacity, but the slowdown is clear.

The slowdown relates to increases in interest rates. In March, the Federal Reserve made its ninth hike to interest rates in the last year. The unintended consequence of the increases is that asset values determined by the capitalization of future cash flows like your agency and technology stocks have been negatively impacted.

Robert Pettinicchi Executive VP and CLO

InsurBanc, a Division of Connecticut Community Bank N.A.

The other impact is that with rate increases, it costs more to pay the interest on debt used to buy an agency. This is why PE buyers, who use borrowed money and a lot of it are having a case of acid reflux from their recent purchases. They might be realizing that they may have paid too much, overestimated synergies or cost savings, or didn't buy agencies that were very special.

With many PE buyers now taking a pause, some agency owners might wonder if they can still sell their agency and get a good price. While it's a legitimate concern, unless an agency principal is actively seeking to sell the firm for retirement or other reasons in the very near future, there is no cause for alarm. The agency owner is still very well off owning and running the firm with continuing good cash flow.