35 / 186
F.
Parent Corporation
G.
Plans for Future Ownership of Agency
H.
Population Density of Metropolitan Area Where Home Office Is Located
AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000
34
EXECUTIVE
PERSPECTIVES
PROFILE
REVENUES/
EXPENSES
FINANCIAL
STABILITY
EMPLOYEE
OVERVIEW
PRODUCER
INFO
SERVICE
STAFF
INFO
TECHNOLOGY
INSURANCE
CARRIERS
APPENDIX
Average
+25%
Profit
+25%
Growth
Less than 50,000
53.3%
57.9%
56.5%
50,000 - 250,000
16.7%
15.8%
17.4%
250,000 - 1,000,000
23.3%
21.1%
19.6%
More than 1,000,000
6.7%
5.3%
6.5%
Description of Parent Corporation
Financial Institution
100.0%
National Broker
0.0%
Other
0.0%
Average
% of Participating Agencies
Owned by Another Corporation
3.3%
For more detail on
bank-owned agency
performance, see
Observations of
Bank-Owned
Agencies
on page
175 of this Study.
Average
Sell to Employees/Family
40.0%
Sell to Third Party in 1 to 5 years
6.6%
Sell to Third Party in 6 to 10 years
13.3%
Sell to Third Party in 11+ years
6.7%
Merge with Privately-held Agency
16.7%
Uncertain at this point
16.7%
Although a significant number of these agencies want to perpetuate internally,
they recognize the challenges that come with their smaller size, e.g., meeting
carrier volume requirements, attracting talented employees, raising capital for
necessary investments in systems and people, and being both a manager and
producer. As such many are merging together with agencies of similar size. If
no ideal merger partner can be found, they will opt to sell to a third party.