The select quote (NYSE: SLQT at https://www.webull.com/quote/nyse-slqt) is delivering the largest U.S. initial public offering since February at the time of the IPO market has softened as a result of the coronavirus pandemic. On Thursday the stock began trading $20 and had risen 42% to $28.45 as a market cap around $4.6 billion.
The Business Model
Select Quote was founded in 1985 which helps the consumer for the purchase of health, life, auto, and home insurance policies. The curated panel of the nation’s leading carriers in the field of insurance.
The Select quotes company claims that it is the first direct to consumer term life insurance exchange in the U.S. It not only provides insurance but rather finds the consumers looking to buy it. The Selectquote earns the commission from the insurance carriers for the policies and sells it on their behalf.
The company is almost three decades old that’s why the investor is willing to invest in this company’s shares. The value and the return of NYSE: SLQT is high rather than the other stock market companies.
The company’s work is very smooth and the agents of this company will direct leads to the agents who visit customer homes for consumer needs. The company has highly trained agents and they provide their consumers a transparent, valuable, and best in class experience. They also make sure that they buy a policy that meets specific needs.
The company policy also believes in the direct distribution and also increasingly gives a more effective route in the insurance carriers. It has one size fits all models which are distributed among the traditional insurance policies. The key for Selectquote is allowing consumers to compare prices among carriers and provide them a lot of the information that they know consumers want.
The select quote estimates that it’s in a total addressable market and at least $180 billion for the insurance products which is distributed by it. Its total commission revenue opportunity is $28 billion for the senior’s segment and $105 billion in life insurance. They have auto and home insurance which is $ 47 billion. It has three segments that estimate its share market one percent and also has a lot of potential for better market penetration and market growth of tradeweb stock.
The Financial Performance
In the financial year 2019, the company reported $ 72.6 million in the net income which is 108% more than a year. The total profit of this company as revenue is $ 377.5 million in the financial year 2019. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.