2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

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

6.5%

Description of Parent Corporation Financial Institution

PROFILE

50.0%

National Broker

0.0%

Other

50.0%

REVENUES/ EXPENSES

G.

Plans for Future Ownership of Agency

Average

FINANCIAL STABILITY

Sell to Employees/Family

50.0%

Sell to Third Party in 1 to 5 years

0.0%

Sell to Third Party in 6 to 10 years

3.3%

EMPLOYEE OVERVIEW

Sell to Third Party in 11+ years

6.7%

Merge with Privately-held Agency

0.0%

Uncertain at this point

40.0%

PRODUCER INFO

The split between the agencies that plan to "Sell to Employees/Family" and those that are "Uncertain at This Point" reflects the difficulty many agencies have achiev- ing internal perpetuation. Lacking obvious successors at a point in time, some will wait too long to begin their planning process and find themselves questioning whether or not they will be able to accomplish their goal in the available time frame.

SERVICE STAFF INFO

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

TECHNOLOGY

+25% Profit

+25% Growth

Average

Less than 50,000

18.8%

22.5%

18.8%

INSURANCE CARRIERS

50,000 - 250,000

31.3%

32.5%

35.4%

250,000 - 1,000,000

25.0%

22.5%

22.9%

More than 1,000,000

25.0%

22.5%

22.9%

APPENDIX

82