2004 Best Practices Study

AGENCIES WITH REVENUES OVER $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

13.3%

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

38.5%

Sell to Third Party in 1 to 5 years

0.0%

Sell to Third Party in 6 to 10 years

7.7%

EMPLOYEE OVERVIEW

Sell to Third Party in 11+ years

7.7%

Merge with Privately-held Agency

7.7%

Uncertain at this point

38.5%

PRODUCER INFO

“Using our commitment to independence and the opportunity for equity owner- ship as recruiting tools, we have successfully won the talent wars with our competition.” This practice, used extensively by the firms in this study group, could influence the plans of those agencies that are unsure of their future ownership.

SERVICE STAFF INFO

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

TECHNOLOGY

+25% Profit

+25% Growth

Average

Less than 50,000

6.7%

5.3%

4.3%

INSURANCE CARRIERS

50,000 - 250,000

26.7%

21.1%

21.7%

250,000 - 1,000,000

20.0%

21.1%

21.7%

More than 1,000,000

46.7%

52.6%

52.2%

APPENDIX

154