Risk client demand soars despite LIF

Radar Results principal John Birt said most demand has been for book sizes of $150,000 to $500,000 in annual renewal commissions.

“The age of the clients is important, and the younger the clients, the higher the price multiple," Mr Birt said.

"Whether the premiums have been written as stepped or level doesn't appear to make a price difference.”

According to Radar Results’ six-month price guide, the main changes to prices since 31 October occurred within the ‘Investment clients (age 80 years plus)’ category.

“We have seen client registers change hands at prices of up to 1.8 times the recurring revenue (RR), previously 1.5 times,” Mr Birt said.

“Basically, demand for these clients has increased due to shortages of registers for sale. Even now, the older client bases in the marketplace are looking attractive.”

Mr Birt also added that there has also been increased demand for clients in their late 70s, attracting prices between 1.8 to 2.5 times the recurring revenue.