ALKEME Insurance is making waves in the Midwest with its latest acquisition. The company has purchased Sheets Forrest Draper Insurance (SFD Insurance), a well-established agency in Marion, Iowa. This move is part of ALKEME’s strategy to expand its presence across the United States.
SFD Insurance has been a staple in the community since 1902, serving families and businesses in Marion, Cedar Rapids, Hiawatha, and Iowa City for over a century. The agency, led by Scott and Spencer Stephens, offers a variety of insurance products, including home, auto, and business coverage.
Spencer Stephens expressed excitement about the partnership, stating that joining ALKEME marks an important milestone for the agency. His father, Scott, echoed this sentiment, emphasizing that the collaboration will allow them to maintain their local focus while benefiting from ALKEME’s extensive resources.
ALKEME itself was founded in 2020, emerging from a merger of several Southern California brokerages. Since then, it has grown rapidly, acquiring more than 70 agencies and establishing a presence in over 60 locations across 29 states. The acquisition of SFD Insurance aligns with ALKEME’s goal of partnering with high-performing, locally respected agencies.
This purchase not only strengthens ALKEME’s footprint in the Midwest but also highlights its commitment to preserving the local identity of acquired agencies. Recent acquisitions, including the Innovative Insurance Group in Virginia and Crawford Insurance Group in Michigan, reflect this strategy of combining local expertise with broader operational capabilities.
Interestingly, while the overall mergers and acquisitions market for insurance brokers has cooled, ALKEME has seen its activity surge. Reports indicate that while the sector contracted by 26% in 2024, ALKEME’s acquisitions increased by 66%. This trend suggests a strong demand for consolidation in the industry, particularly for agencies like SFD that have deep roots in their communities.
Financial estimates suggest that SFD Insurance generates annual revenues between $1 million and $10 million, although specific details of the acquisition deal have not been disclosed.
As ALKEME continues to grow, it aims to balance the independence of local agencies with the advantages of modern infrastructure and resources. This approach seems to resonate well with traditional firms looking to enhance their service offerings while staying true to their local roots.