38 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
38
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average Total Revenues: $1,793,932
Population Density of Metropolitan AreasWhere Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
32.4%
37.5%
37.5%
50,000 – 250,000
29.4%
50.0%
25.0%
250,000 – 1,000,000
11.8%
12.5%
0.0%
More than 1,000,000
26.5%
0.0%
37.5%
Corporate Structure
C
36.4%
57.1%
50.0%
S
45.5%
28.6%
37.5%
Partnership
0.0%
0.0%
0.0%
LLC
18.2%
14.3%
12.5%
Sole Proprietorship
0.0%
0.0%
0.0%
Average Number of Agency Locations
(Main Offices and Branch Offices)
1.9
2.4
1.6
# of States Offices are Located in
1.0
1.1
1.0
Agency has an ESOP
0.0%
0.0%
0.0%
% of Stock Owned by ESOP
0.0%
0.0%
0.0%
Shareholders
Number of Shareholders (excluding ESOP)
2.2
2.1
1.6
High
7.0
Low
1.0
Ownership Percentage
% Owned by Largest Shareholder
77.3%
77.1%
74.3%
High
100.0%
Low
33.3%
Shareholder Age
Current Age of Largest Shareholder
50.5
51.9
47.6
Parent Corporation
Average
% of Agencies Owned by Another Corporation
5.9%
Description of Parent Corporation
Financial Institution
100.0%
National Broker
0.0%
Other
0.0%
Member of Group
% of Agencies Belonging to a Franchise, Cluster, Alli-
ance/Network or Aggregator Group
47.1%
Groups included Iroquois Group, Combined Agents of
America, Shared Agency Services, Professional Insur-
ance Associates, Select Prism Group, Pacific Interstate
Ins. Brokers, Hilb Group of Virginia, GA Agency Partners
and North American Insurance Alliance.
Profile
(of Agencies in this Study Group)
Reason for Joining Franchise/Cluster/etc.
Market Access
56.3%
Profit
Sharing
37.5%
Other
6.3%
Other included perpetuation planning.