95 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
95
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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: $6,883,762
B. Population Density of Metropolitan Areas Where Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
15.6%
15.8%
15.9%
50,000 – 250,000
33.3%
29.8%
31.9%
250,000 – 1,000,000
22.2%
21.1%
20.3%
More than 1,000,000
28.9%
33.3%
31.9%
C. Corporate Structure
C
31.1%
26.3%
24.6%
S
53.3%
54.4%
55.1%
Partnership
4.4%
7.0%
7.2%
LLC
11.1%
12.3%
13.0%
Sole Proprietorship
0.0%
0.0%
0.0%
Average Number of Agency Locations
(Main Offices and Branch Offices)
3.1
2.5
2.8
# of States Offices are Located in
1.2
1.0
1.2
Agency has an ESOP
11.1%
8.3%
0.0%
% of Stock Owned by ESOP
48.3%
20.0%
0.0%
D. Shareholders
Number of Shareholders (excluding ESOP)
4.5
4.1
4.1
High
11.0
Low
1.0
E. Ownership Percentage
% Owned by Largest Shareholder
54.3%
60.6%
70.8%
High
100.0%
Low
7.2%
F. Shareholder Age
Current Age of Largest Shareholder
56.6
54.7
55.9
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
7.0%
Description of Parent Corporation
Financial Institution
33.3%
National Broker
0.0%
Other
66.7%
H. Member of Group
% of Agencies Belonging to a
Franchise, Cluster, Alliance/Network or
Aggregator Group
17.8%
“Groups” included
Assurex, Intersure, Keystone,
Insurance & Risk Managers, and
Combined Agents of America