2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

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

10.0%

Description of Parent Corporation Financial Institution

PROFILE

66.7%

National Broker

0.0%

Other

33.0%

REVENUES/ EXPENSES

G.

Plans for Future Ownership of Agency

Average

FINANCIAL STABILITY

Sell to Employees/Family

53.3%

Sell to Third Party in 1 to 5 years

0.0%

Sell to Third Party in 6 to 10 years

6.7%

EMPLOYEE OVERVIEW

Sell to Third Party in 11+ years

0.0%

Merge with Privately-held Agency

6.7%

Uncertain at this point

33.3%

PRODUCER INFO

"We aren't sure what we will do now. We've been approached a couple of times by banks but never considered it (selling to a bank). Now that we've been approached again we're thinking that maybe we should listen. They have been in the business a while and have a pretty good track record."

SERVICE STAFF INFO

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

TECHNOLOGY

+25% Profit

+25% Growth

Average

Less than 50,000

38.7%

38.5%

40.4%

INSURANCE CARRIERS

50,000 - 250,000

32.3%

33.3%

27.7%

250,000 - 1,000,000

9.7%

10.3%

12.8%

More than 1,000,000

19.4%

17.9%

19.1%

APPENDIX

58