5 / 191
2010 Best
Practices Study
Agencies
with Revenues
Under $1,250,000
5
Analysis of Agencies with Revenues Under $1,250,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Profile
(of Agencies in this Study Group)
A. Average Total Revenues: $791,342
B. Population Density of Metropolitan Areas Where Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
52.5%
48.0%
48.3%
50,000 – 250,000
22.5%
22.0%
20.0%
250,000 – 1,000,000
15.0%
18.0%
20.0%
More than 1,000,000
10.0%
12.0%
11.7%
C. Corporate Structure
C
32.5%
30.0%
31.7%
S
45.0%
46.0%
43.3%
Partnership
5.0%
4.0%
6.7%
LLC
15.0%
18.0%
16.7%
Sole Proprietorship
2.5%
2.0%
1.7%
Average Number of Agency Locations
(Main Offices and Branch Offices)
1.3
1.2
1.5
# of States Offices are Located in
1.0
1.1
1.0
Agency has an ESOP
0.0%
0.0%
20.0%
% of Stock Owned by ESOP
0.0%
0.0%
82.5%
D. Shareholders
Number of Shareholders (excluding ESOP)
1.9
3.0
2.0
High
5.0
Low
1.0
E. Ownership Percentage
% Owned by Largest Shareholder
77.4%
66.7%
66.7%
High
100.0%
Low
46.0%
F. Shareholder Age
Current Age of Largest Shareholder
53.6
57.5
52.1
G. Parent Corporation
Average
“Other” included AAA,
joint venture, another insurance
agency, holding company or large
ESOP with number of diversified
industries.
% of Agencies Owned by Another Corporation
2.7%
Description of Parent Corporation
Financial Institution
100.0%
National Broker
0.0%
Other
0.0%
H. Member of Group
% of Agencies Belonging to a
Franchise, Cluster, Alliance/Network or
Aggregator Group
17.5%
“Groups” included DCS, Shared Agency
Services, 3-S Agencies, SMART Group,
Iroquois, Pacific Interstate Insurance
Brokers, and Consolidated Agencies.