2013 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Average Total Revenues: $3,318,536 Profile (of Agencies in this Study Group)
Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix
Population Density of Metropolitan AreasWhere Home Office is Located Average
+25% Profit
+25% Growth
Less than 50,000 50,000 – 250,000 250,000 – 1,000,000 More than 1,000,000 Corporate Structure C
31.1% 35.6% 11.1% 22.2%
54.5% 27.3%
36.4% 36.4%
0.0%
9.1%
18.2%
18.2%
20.0% 51.1%
27.3% 36.4%
27.3% 54.5%
S
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%
0.0% 0.0%
% of Stock Owned by ESOP
100.0%
Shareholders Number of Shareholders (excluding ESOP)
3.3 7.0 1.0
3.7
3.1
High Low
Ownership Percentage % Owned by Largest Shareholder
60.9%
63.8%
67.4%
High Low
100.0%
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% 25.0% 50.0%
National Broker
Other
Member of Group % of Agencies Belonging to a Franchise, Cluster, Alliance/Network or Aggregator Group
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.
40.0%
2013 Best Practices Study
Reason for Joining Franchise/Cluster/etc.
Agencies with Revenues Between $2,500,000 and $5,000,000
Market Access 25.0%
Other 12.5%
Other included association with quality agents and association with other professional agents.
70
Profit Sharing 62.5%
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