Infinity Insurance

About Infinity Insurance

Infinity Insurance Company is a publicly listed insurance company that offers auto, home, life, and business insurance products. It offers vehicle insurance products, such as auto, motorcycle, ATV, RV, boat, and car insurance; business insurance, such as commercial auto, commercial general liability, and business owners’ policy products; property insurance, including home, renters, mobile home, flood, and condo insurance; and other products, such as life, health, and umbrella insurance. It offers its products through independent agencies and brokers in the United States. Infinity Insurance Company was formerly known as Dixie Insurance Company and changed its name to Infinity Insurance Company in August 1992. The company was incorporated in 1978 and is based in Birmingham, Alabama. Infinity Insurance Company operates as a subsidiary of Infinity Property and Casualty Corporation.

Company Problem

Infinity Insurance's management team needed assistance assessing the feasibility of a potential expansion opportunity. The company was interested in launching a Managed General Agency business unit for commercial business insurance as an ancillary to its existing auto insurance lines. Infinity Insurance needed help analyzing the viability and market potential of the new opportunity and required a strategic plan that outlined the operational infrastructure, sales and marketing strategy, and financial capital requirements necessary to launch the new business unit.

Edeska Solution

1. Edeska interviewed the company's management team to get a better understanding of its new business objectives.

2. Edeska held strategy sessions with management to discuss the new insurance products being offered, in addition to the business model, sales and marketing, operational, and financial tactics required to successfully execute on the new expansion opportunity.

3. Edeska conducted strategic market research to understand the commercial business insurance landscape and identify opportunities in the market for the company to take advantage of. The research included an analysis of the industry's current trends, key external drivers, product & services segmentation, and current players competing in the space.

4. Edeska established a five-year financial model for the new business unit including a monthly operating budget and sales forecasts required to reach its profitability benchmarks. The financial model also included the marketing budget and sales staff required to achieve the target revenue forecasts.

5. Edeska developed a business plan that outlined the key tactics and strategies required to launch and sustain the growth of its new business unit.

Edeska Results

Following the engagement, the business plan was presented to Infinity Insurance's Board of Advisors resulting in the approval of $5 Million in capital to be allocated towards the launch of its new business unit. Through the launch of its new business unit, the company grew its revenue from $1.39 Billion in 2016 to $1.51 Billion in 2018 with reported net income of $44 million. Infinity Insurance was then acquired by Kemper Corp for $1.6 Billion in 2018. Now, the two combined companies have a diversified portfolio across auto, home, life, and health insurance with approximately $2.2 billion in nonstandard auto insurance premiums, more agency relationships and greater efficiencies.