2007 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

“The primary reason for our success is that we operate as a business first and an insurance agency second. As a principal, I do not personally sell insurance. I focus on running the business. Agencies can get so focused on selling, they don’t maximize other opportunities for the business.”

G. Parent Corporation

Average

10.7%

Agency is Owned by Another Corporation

“Other” includes AAA, joint venture, and another insurance agency.

Description of Parent Corporation

Financial Institution

33.3%

National Broker

0.0%

Other

33.3%

H. Plans for Future Ownership of Agency

Average

Sell to Employees/Family

50.0%

“We are in a population area of 85,000. Finding new young producers that we can groom for future ownership is a challenge. Our agency owners are aging with the average around 52 years old. We cannot find young producers interested in our business.”

Sell to Third Party in 1 to 5 years

3.3%

Sell to Third Party in 6 to 10 years

6.7%

Sell to Third Party in 11+ years

13.3%

Merge with Privately-held Agency

0.0%

Uncertain at this Point

26.7%

64 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Profile