An independent agency owner invests time, effort, and money in building an agency. When retirement nears, or when other circumstances lead to a decision to sell, the owner has many factors to consider, including:

• How to continue customer service and agency management
• How to realize agency equity value
• Determining the extent of future personal involvement

Leavitt Group Enterprises has carefully developed solutions for agency owners in a wide range of circumstances. Solutions have ranged from buying out a retiring co-owner to facilitating the orderly separation of feuding partners.

Planning is the key to enhanced agency values; however, Leavitt Group Enterprises is prepared to explore any agency need whether carefully planned, motivated by an emergency, or somewhere in between.

Limited access to markets can impede an agency's ability to be competitive. In addition to their own agency appointments, Leavitt Group agencies can access markets through interagency relationships and the placement resources of the Group’s central placement division, Agency Programs and Placement Services (APPS).

Leavitt Group agencies collectively represent over 800 insurers and general agencies. Appointment mixes vary from agency to agency; thus, interagency relationships naturally create numerous placement opportunities. Where carriers allow, affiliated agencies assist other affiliates in placing accounts.

Leavitt Group agencies, through membership in Leavitt Group Agency Association (LGAA), participate in the benefits and responsibilities of LGAA-owned businesses, including the APPS Division, Mutual Insurance Services (MGA), Accident and Loss Prevention Services (ALPS),and Allegiance Direct Bank (FDIC insured), which offers premium financing and savings products.

In addition to its businesses, LGAA has a Servic Division that provides a variety of services to agencies, such as computer systems, training, payroll services, communications assistance, sales contests, and data analysis. Leavitt Group agencies also have the opportunity to invest and participate in PacWest Captive Insurance Company, Inc., an agency-owned captive.

Ongoing sales are the lifeblood of an agency. Without new business, an agency will die. Prudent acquisitions of books of business can bring accelerated growth, increased profitability, and enhanced agency staffing. Many Leavitt Group agencies, with the management, accounting, financial, and legal support of Leavitt Group Enterprises, have seen significant growth and increased profitability through the purchase of books of business.

An agency can achieve high volume, employ a large number of people, yet produce little or no profit. Agencies often reach a size where customer service, accounting, and information management needs outgrow the agency's existing procedures and computer systems.

By providing automation, management, and training resources to agencies, Leavitt Group Enterprises helps agencies increase productivity, enhance customer satisfaction, prevent errors and omissions, improve accounting information, strengthen agency management, and heighten profits.

Affiliated Leavitt Group agencies have access to a variety of internal resources such as:

• Controllers (accounting, audit, tax return preparation)
• Legal services and group-wide E&O coverage
• Payroll management
• Computer networks using AMS for Windows (AfW)
• Agency liaisons (budgeting, planning, insurer relationships)
• Technical support
• A company Intranet site
• Custom agency web sites
• Communications and advertising services
• Employee training (including CE credit)
• Employee health benefits & 401(k)
• Producer recruiting

The risks associated with creating an independent insurance agency can be challenging. Perhaps the most unforgiving roadblock to an aspiring agency owner is insufficient operating capital. It takes time to build a book of business large enough to cover overhead and produce a profit. Without adequate funding during the developing years, a new independent agency may not survive.

The Leavitt Group is eager to share its strong insurer relationships with the right person in the right community. Under the right circumstances, Leavitt Group Enterprises will join with a proven producer to start a new agency.

Leavitt Group Enterprises serves as the main source of funding
for Leavitt Group agencies needing to purchase books of business, upgrade computer systems, hire new producers, or meet other critical needs. The Leavitt Group acts as a stable shareholder and has a policy of carefully assisting agencies with their funding requirements. This allows Leavitt Group agencies to take advantage of sound growth opportunities.

For smaller agencies, fixed overhead costs can leave little or no margin for profits. Several small Leavitt Group agencies have successfully merged with larger Leavitt Group agencies in order to enhance profits. The merger allows small agencies to enjoy commission revenue that is less encumbered by expenses, such as payroll, office space, and phone lines. The small agency's owner retains an interest in his or her book of business, with an option from the Leavitt Group agency to purchase the book of business upon the individual's retirement. In addition, smaller agencies can tap into the larger organization's strength for economic solutions to resource needs, such as group-wide purchasing.