Insurance books are attracting higher multiples than financial planning client books or loan books as brokers and advisers converge via acquisition.
Vendor advocate Forte Asset Solutions has seen an increase in industry convergence but little demand for mortgage books.
"They are still probably selling at the lower end of the range – one and a half to two times recurring revenue," Forte Asset Solutions managing director Steve Prenderville told Mortgage Business.
"Normally they are pretty closely held within franchise agreements with an inability to sell externally," he said.
Insurance is a natural fit for both mortgage brokers and financial advisers looking to retain clients through diversification, but they are really a cash cow for businesses, Mr Prenderville told Mortgage Business.
"Risk will often be a book sale," he said.
Insurance books attract a higher premium because they are not held hostage to economic market movements, Mr Prendeville said, adding that as a result of this they are a scarce asset.
"Very few come to market," he said. "People jump on them when they do and there is significant demand right now," he said.