6 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
6
Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average Total Revenues: $789,963
Population Density of Metropolitan AreasWhere Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
54.5%
25.0%
37.5%
50,000 – 250,000
24.2%
25.0%
25.0%
250,000 – 1,000,000
15.2%
37.5%
37.5%
More than 1,000,000
6.1%
12.5%
0.0%
Corporate Structure
C
18.2%
0.0%
0.0%
S
69.7%
75.0%
75.0%
Partnership
0.0%
0.0%
0.0%
LLC
9.1%
25.0%
25.0%
Sole Proprietorship
3.0%
0.0%
0.0%
Average Number of Agency Locations
(Main Offices and Branch Offices)
1.3
1.0
1.4
# of States Offices are Located in
1.1
1.0
1.1
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)
2.4
2.0
1.4
High
12.0
Low
1.0
Ownership Percentage
% Owned by Largest Shareholder
74.6%
75.1%
86.4%
High
100.0%
Low
30.0%
Shareholder Age
Current Age of Largest Shareholder
53.7
51.0
52.1
Parent Corporation
Average
% of Agencies Owned by Another Corporation
3.3%
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
39.4%
Groups included Iroquois, Combined Agents of
America, DCS Risk Management Group, ISU, SIAA,
Bainswest, Continental Insurance Agency Alliance, TIA,
Marketsource, Empire Spectrum Group and Consoli-
dated Agencies, LLC.
Profile
(of Agencies in this Study Group)
Reason for Joining Franchise/Cluster/etc.
Market Access
38.5%
Profit
Sharing
46.2%
Other
15.4%
Other included to associate with quality agents and
as a resource partnership.