2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

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

6.9%

Description of Parent Corporation Financial Institution

PROFILE

100.0%

National Broker

0.0% 0.0%

Other

REVENUES/ EXPENSES

G.

Plans for Future Ownership of Agency

Average

FINANCIAL STABILITY

Sell to Employees/Family

64.5%

Sell to Third Party in 1 to 5 years

6.5%

Sell to Third Party in 6 to 10 years

3.2%

EMPLOYEE OVERVIEW

Sell to Third Party in 11+ years

3.2%

Merge with Privately-held Agency

0.0%

Uncertain at this point

22.6%

PRODUCER INFO

“I used to think that ‘getting started early’ was the key to perpetuation. I’ve come to realize that even the most well thought-out plan is no guarantee of success in perpetuating our agency. It is a never-ending struggle.”

SERVICE STAFF INFO

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

TECHNOLOGY

+25% Profit

+25% Growth

Average

Less than 50,000

3.1%

2.5%

2.1%

INSURANCE CARRIERS

50,000 - 250,000

21.9%

22.5%

22.9%

250,000 - 1,000,000

28.1%

30.0%

29.2%

More than 1,000,000

46.9%

45.0%

45.8%

APPENDIX

130