65 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
65
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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: $3,681,440
B. Population Density of Metropolitan Areas Where Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
35.1%
29.8%
28.1%
50,000 – 250,000
18.9%
21.3%
19.3%
250,000 – 1,000,000
18.9%
19.1%
21.1%
More than 1,000,000
27.0%
29.8%
31.6%
C. Corporate Structure
C
30.6%
28.3%
26.8%
S
50.0%
52.2%
55.4%
Partnership
2.8%
4.3%
5.4%
LLC
16.7%
15.2%
12.5%
Sole Proprietorship
0.0%
0.0%
0.0%
Average Number of Agency Locations
(Main Offices and Branch Offices)
1.9
2.0
1.4
# of States Offices are Located in
1.2
1.1
1.0
Agency has an ESOP
16.2%
0.0%
20.0%
% of Stock Owned by ESOP
34.3%
0.0%
82.5%
D. Shareholders
Number of Shareholders (excluding ESOP)
2.9
3.0
2.6
High
7.0
Low
1.0
E. Ownership Percentage
% Owned by Largest Shareholder
60.6%
66.7%
67.3%
High
100.0%
Low
16.0%
F. Shareholder Age
Current Age of Largest Shareholder
54.7
57.5
55.8
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
0%
Description of Parent Corporation
Financial Institution
0.0%
National Broker
0.0%
Other
0.0%
H. Member of Group
% of Agencies Belonging to a
Franchise, Cluster, Alliance/Network or
Aggregator Group
13.5%
“Groups” included
Combined Agents of America, Shared
Agency Services, Trusted Insurance
Alliance, and Insurors Group.