64 / 185
64
2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Profile
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Agencies with Revenues Between $2,500,000 and $5,000,000
G. Parent Corporation
Average
“Other” includes AAA, joint venture, and
another insurance agency.
Agency is Owned by Another Corporation
10.7%
Description of Parent Corporation
Financial Institution
33.3%
National Broker
0.0%
Other
33.3%
H. Plans for Future Ownership of Agency
Average
“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 Employees/Family
50.0%
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%
“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.”