102 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
102
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average Total Revenues: $7,182,620
Population Density of Metropolitan AreasWhere Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
25.6%
30.0%
10.0%
50,000 – 250,000
23.3%
30.0%
20.0%
250,000 – 1,000,000
14.0%
10.0%
0.0%
More than 1,000,000
37.2%
30.0%
70.0%
Corporate Structure
C
18.6%
10.0%
10.0%
S
60.5%
60.0%
60.0%
Partnership
7.0%
10.0%
10.0%
LLC
14.0%
20.0%
20.0%
Sole Proprietorship
0.0%
0.0%
0.0%
Average Number of Agency Locations
(Main Offices and Branch Offices)
3.3
2.8
3.7
# of States Offices are Located in
1.2
1.1
1.0
Agency has an ESOP
9.3%
20.0%
0.0%
% of Stock Owned by ESOP
64.6%
59.7%
0.0%
Shareholders
Number of Shareholders (excluding ESOP)
4.4
4.4
3.4
High
13.0
Low
1.0
Ownership Percentage
% Owned by Largest Shareholder
56.8%
63.0%
74.0%
High
100.0%
Low
12.0%
Shareholder Age
Current Age of Largest Shareholder
57.9
61.7
57.6
Parent Corporation
Average
% of Agencies Owned by Another Corporation
7.3%
Description of Parent Corporation
Financial Institution
33.3%
National Broker
33.3%
Other
33.3%
Member of Group
% of Agencies Belonging to a Franchise, Cluster, Alli-
ance/Network or Aggregator Group
27.9%
Groups included Assurex Global, SIAA, IIANC, Master
Vision Partners, Insurors Group, Intersure, Keystone
Insurers Group, Benefits Advisors Network, Northern
United Agents Alliance, Combined Agents of America,
Insurance & Risk Managers and ARM South.
Profile
(of Agencies in this Study Group)
Reason for Joining Franchise/Cluster/etc.
Back Office
Support
14.3%
Profit
Sharing
57.1%
Other
28.6%
Other included sharing ideas with agencies of like
size and benchmarking.