After seeing the results of 2011, it’s easy to understand why many privately-held agents and brokers are optimistic about growing organically in 2012. In Reagan Consulting’s 2011 year-end Organic Growth and Profitability Survey (OGP Survey), results show that median organic growth for participants was 3.7 percent, nearly double that of 2010. A 3.3 percent median growth for P&C commercial lines was also a large improvement over 2010. Source: Press Release - Reagan Survey: Organic Growth and Profitability Continues to Improve for Privately-held Insurance Agencies and Brokerages; http://www.reaganconsulting.com/press-releases
Life insurance sales
increase 1st quarter Whole life is attributed as the driving force behind a three percent increase in total individual life insurance premiums and a five percent increase in the number of policies during the first quarter of 2012 over the previous year. Accounting for 50 percent of all individual policies issued, whole life premiums grew 10 percent while policies grew by six percent. Source: http://www.limra.com/newscenter
Agency productivity
soars with technology In 1993, the average revenue for an employee in an agency that relied on best practices was $83,000. Today, that number has grown to approximately $183,000. This is according to Jeff Yates, ACT executive director for the Independent Insurance Agents and Brokers of America. The exponential improvement is attributed to innovations in agency management system technology, access to data, and mobile innovations that are embraced by agencies of all sizes. Source:
Correlation between younger owner age and higher business production
An article published by Leader’s Edge points to younger owners having higher new business production. When looking at new business as a percentage of prior year commissions, it increased as the weighted average owner age decreased. This metric could affect valuations of agencies with older owners. Source: The 2012 Valuation Crescendo; Leaders Edge 2012 Executive Report