2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

F.

Parent Corporation

Average

EXECUTIVE PERSPECTIVES

% of Participating Agencies

For more detail on bank-owned agency performance, see Observations of Bank-Owned Agencies on page 175 of this Study.

Owned by Another Corporation

12.9%

Description of Parent Corporation Financial Institution

PROFILE

75.0%

National Broker

0.0%

Other

25.0%

REVENUES/ EXPENSES

G.

Plans for Future Ownership of Agency

Average

FINANCIAL STABILITY

Sell to Employees/Family

66.7%

Sell to Third Party in 1 to 5 years

3.7%

Sell to Third Party in 6 to 10 years

11.1%

EMPLOYEE OVERVIEW

Sell to Third Party in 11+ years

0.0%

Merge with Privately-held Agency

0.0%

Uncertain at this point

18.5%

PRODUCER INFO

The past year has produced a renewed interest in formal internal perpetuation planning. Those agencies that were not gobbled up in the M&A frenzy of the last 3-5 years are renewing their commitment to remain independent by ensur- ing that their perpetuation plans are viable and that their valuations are appro- priate for internal perpetuation purposes.

SERVICE STAFF INFO

H. Population Density of Metropolitan Area Where Home Office Is Located

TECHNOLOGY

+25% Profit

+25% Growth

Average

Less than 50,000

19.4%

20.5%

19.1%

INSURANCE CARRIERS

50,000 - 250,000

22.6%

20.5%

21.3%

250,000 - 1,000,000

35.5%

38.5%

36.2%

More than 1,000,000

22.6%

20.5%

23.4%

APPENDIX

106