(E)MERGE NEWS | JANUARY 2022

Happy New Year! Hopefully, this finds you in good spirits after the holiday season. The hustle and bustle of the holiday season was one of great joy to me this year. Watching the kids grow a bit older each year sank in on me this time around.

Despite the joy around holidays, being in the insurance industry is a bit of a grind late into Q4 and for all the Jan. 1 accounts on the books. I am happy to report that TrueNorth finished with some impressive results in 2021. Always at the forefront of our minds, organic growth ruled the day at our company. Outpacing most of our peers again, we were able to clip along right around a 10% organic growth rate. Add in some strategic mergers and acquisitions and TrueNorth eclipsed some rarified air . . . $100,000,000 of revenue!

Yes, while celebrating just our 20th year since our founding, TrueNorth and its related entities are now over $100,000,000 in revenue. We now rank inside of the top 30 largest agencies in the nation and higher still on the list of true independently owned agencies. We celebrate our independence and have used our entrepreneurial spirit to thrive in this ever-evolving landscape of insurance. With a talented staff now consisting of over 500 people, TrueNorth Companies is poised for even further expansion.

The Insurance M&A Market Remains HOT in the U.S.

According to MarshBerry, the total M&A deal count will be around 800. This deal count number will surpass the previous record set just a year ago by around 10-15%. You might begin to wonder who will be left standing after 2021 hits the 5th year in a row for record-announced deals. Remaining independent still has a strong space in our industry, however, the game is changing and changing quickly. Remaining 100% independent while everyone is scaling up will force you to reinvest back into your company.

First MainStreet Insurance Continues to Grow!

It is my pleasure to announce the addition of four new locations to the First MainStreet Insurance (FMSI) family of agencies!

CIA Insurance entered into an agreement with FMSI on 12/31/21. With three locations in Cresco, Osage and Lime Springs, Iowa—CIA comes to us rich in tradition. Serving the area since 1948 and family-oriented, CIA has been the preeminent agency in Howard County around surrounding areas for almost 75 years. All 12 talented individuals will be joining the platform, giving FMSI a deep talent pool for further expansion in northeast Iowa. Boasting a great lineup of carriers and a strategic geographic footprint, CIA will be a welcomed addition to FMSI.

Located just west of West Des Moines, United Risk Services is the fourth location to join us in December. Completing the acquisition on 12/31/21, Lauren Volz and his two staff members have effectively been added to FMSI. Continued expansion into western Iowa has been a target of ours and adding this agency will continue to evolve our platform into this side of the state. Congratulations to the United Risk Services team!

With a few deals already agreed to in 2022, and many more in the immediate pipeline, this new year should create quite a buzz in the industry. We are also looking to expand our geographic footprint in contiguous states. If you are interested in being a platform agency located outside of the border of Iowa, please do connect with me if you are growth-minded, entrepreneurial-spirited, and want an unlimited future.

Want to hear from someone else on the topic? Watch the short video below on our story.

Best of luck to all in the coming months. Hit the ground running in 2022 and I will be back in touch with further updates in a few months. Be Safe, Be Healthy, and Be Growing.

Dan Driscoll, Director of Strategic Expansion and M&A

Ph: (319) 739-1444 | Email: [email protected]