2011 Best Practices Study

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Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
3
2011 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
A. Average Total Revenues: $783,786
B. Population Density of Metropolitan AreasWhere Home Office is Located
Average +25% Profit +25% Growth
Less than 50,000 4848.6% 42.6% 43.9%
50,000 – 250,000 27.0% 27.7% 28.1%
250,000 – 1,000,000 13.5% 17.0% 17.5%
More than 1,000,000 10.8% 12.8% 10.5%
C. Corporate Structure
C 36.1% 34.8% 34.5%
S 50.0% 50.0% 47.3%
Partnership 2.8% 2.2% 3.6%
LLC 8.3% 10.9% 12.7%
Sole Proprietorship 2.8% 2.2% 1.8%
Average Number of Agency Locations
(Main Offices and Branch Offices) 1.4 1.1 1.6
# of States Offices are Located in 1.0 1.1 1.1
Agency has an ESOP 0.0% 0.0% 0.0%
% of Stock Owned by ESOP 0.0% 0.0% 0.0%
D. Shareholders
Number of Shareholders (excluding ESOP) 1.9 2.3 2.0
High 6.0
Low 1.0
E. Ownership Percentage
% Owned by Largest Shareholder 79.2% 71.6% 86.3%
High 100.0%
Low 30.0%
F. Shareholder Age
Current Age of Largest Shareholder 52.2 51.6 51.6
G. Parent Corporation
Average
“Other” included
Holding Company.
% of Agencies Owned by Another Corporation 5.6%
Description of Parent Corporation
Financial Institution 50.0%
National Broker 0.0%
Other 50.0%
H. Member of Group
% of Agencies Belonging to a Franchise, Cluster,
Alliance/Network or Aggregator Group 32.4%
“Groups”consisted of Georgia Agency Partners, 3-S Group, Smart
Group, LLC, Shared Agency Services, Consolidated Agencies,
LLC, Northern New England Insurance Group, Iroquois, Stateline
Group, SIAA, and Pacific Interstate Insurance Brokers.
Profile (of Agencies in this Study Group)