Why Affiliate?
Today's business climate presents great opportunities for effective, resourceful, and talented people in the insurance industry. Agency owners preparing for retirement, new producers seeking agency ownership opportunities, and individuals seeking rewarding employment in the insurance industry should contact the Leavitt Group to discuss the benefits of affiliation.
Mark O. Leavitt - Director, Affiliation Marketing
Independent insurance agency can benefit from affiliation with the Leavitt Group. The following are among the reasons for affiliation:
Agency Perpetuation
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.
Growth by Acquisition
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.
In addition, small agencies have taken advantage of economies of scale by successfully merging with larger Leavitt Group agencies. The merger allows small agencies to enhance profits and enjoy commission revenue that is less encumbered by expenses, such as office space and phone lines.
Agency Funding
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.
Creating New Agencies
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 favorable circumstances, Leavitt Group Enterprises will join with a proven producer to start a new agency.
