70 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
70
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average Total Revenues: $3,318,536
Population Density of Metropolitan AreasWhere Home Office is Located
Average
+25% Profit
+25% Growth
Less than 50,000
31.1%
54.5%
36.4%
50,000 – 250,000
35.6%
27.3%
36.4%
250,000 – 1,000,000
11.1%
0.0%
9.1%
More than 1,000,000
22.2%
18.2%
18.2%
Corporate Structure
C
20.0%
27.3%
27.3%
S
51.1%
36.4%
54.5%
Partnership
2.2%
9.1%
0.0%
LLC
26.7%
27.3%
18.2%
Sole Proprietorship
0.0%
0.0%
0.0%
Average Number of Agency Locations
(Main Offices and Branch Offices)
1.5
1.7
1.1
# of States Offices are Located in
1.1
1.0
1.0
Agency has an ESOP
2.2%
0.0%
0.0%
% of Stock Owned by ESOP
100.0%
0.0%
0.0%
Shareholders
Number of Shareholders (excluding ESOP)
3.3
3.7
3.1
High
7.0
Low
1.0
Ownership Percentage
% Owned by Largest Shareholder
60.9%
63.8%
67.4%
High
100.0%
Low
20.0%
Shareholder Age
Current Age of Largest Shareholder
56.1
59.6
54.9
Parent Corporation
Average
% of Agencies Owned by Another Corporation
9.3%
Description of Parent Corporation
Financial Institution
25.0%
National Broker
25.0%
Other
50.0%
Member of Group
% of Agencies Belonging to a Franchise, Cluster,
Alliance/Network or Aggregator Group
40.0%
Groups included Combined Agents of America,
Northlake Insurance Group, Shared Agency Services,
Secure Risk Insurance Solutions, ARM of Illinois, Insurica
Insurance Network, Assuralliance, SIAA, Consolidated
Insurance Agents, and Trusted Insurance Alliance.
Profile
(of Agencies in this Study Group)
Reason for Joining Franchise/Cluster/etc.
Market Access
25.0%
Profit
Sharing
62.5%
Other
12.5%
Other included association with quality agents and
association with other professional agents.