e-Insight - September 2021 by Big I Illinois

SEPTEMBER 2021

INSIGHT MERGERS & ACQUISITIONS Weighing All Options

Plus

How to Navigate ADA Accessibility Complaints

Education Lineup

Commercial | Personal | Farm-Ag | Specialty

Matthew B. Illinois Sales Manager

Tricia B., Personal Lines Underwriter

Tyler H. Agribusiness Lines

Underwriter

Honest relationships SECURA’s team of insurance experts is making insurance genuine. They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.

Interested in building a relationship? Contact us at secura.net/IL-agents.

Tyler S. Specialty Lines Underwriter

Kelly L. Commercial Lines Underwriter

Hear from our experts. Want to learn more about what SECURA has to offer? Scan the QR code or visit secura.net/IL-agents for more information about the SECURA team.

September 2021

Editor & Graphic Design - Rachel Romines

Advertising - Tami Hubbell

CONTENTS 12

How to Navigate Accessibility Complaints Under the Americans With Disabilities Act

By HeplerBroom

14 16 17 20

Six Ways Financial Partnering Can Help Independent Agencies Thrive

24 25 26 28 30

The Difference Between Selling Your Book vs. Selling Your Business

By David Tralka

Aggregators, Alliances, and Clusters: What’s the Difference? Mergers and Acquisitions Errors & Omissions Checklists

By Utica National Insurance Group

Weighing Options: IIA of IL Member Agents Give Their Perspective on Not Selling

By IIA of IL Staff

By Alan Grayson

So You’re Thinking About Selling (or Buying) an Agency?

By Richard Lund

The Human Aspect of M&A Integration

By Marsha Lewis

Insurance Agency Valuations at All-Time Hights

By Harrison Brooks

CONVO 2021 - Education Classes

In This Issue

The Independent Insurance Agents of Illinois (IIA of IL) has been providing members with a sustainable competitive advantage since 1899.

7 9 11 19

President’s Message Brett’s Two Sense Government

e-Insight

32 34 35 37 38

Associate News Agency Members in the News Outgoing IIA of IL Board Members IIA of IL News Classifieds

info@iiaofil.org | www.iiaofil.org | (800) 628-6436 or (217) 793-6660 | Fax: (217) 793-6744

2009 • 2010 • 2011 • 2012 • 2013 • 2014 2015 • 2016 • 2017 • 2019 • 2020 • 2021

Insight is the official publication of the Independent Insurance Agents of Illinois (IIA of IL). The magazine is published monthly for the members of the IIA of IL, with the office located at 4360 Wabash Avenue, Springfield, Illinois 62711-7009; Consumer Website: www.ChooseIndependent.com. The IIA of IL welcomes letters discussing concerns of the insurance industry, articles, editorials, other matters of interest to the membership. The editor reserves the right to edit and select submissions for publication. Address submissions for review to Rachel Romines at rromines@iiaofil.org. For advertising information, contact Tami Hubbell at thubbell@iiaofil.org.

Board of Directors Executive Committee

Regional Directors

ADVERTISERS 40

APPLIED UNDERWRITERS

ARLINGTON/ROE

BERKSHIRE HATHAWAY/GUARD INSURANCE CO

CLICKVSC

EBRM

GRINNELL MUTUAL REINSURANCE COMPANY

INSURANCE PROGRAM MANAGERS GROUP

13 COVER TIP

JM WILSON OMAHA NATIONAL UNDERWRITERS, LLC

SECURA INSURANCE

UNITED FIRE GROUP

WEST BEND MUTUAL INSURANCE CO.

Committee Chairs

IIA of Illinois Staff

Budget & Finance | Bennie Jones (312) 960-6200 | bjones@rmsoa.com

Director of Information and Technology Shannon Churchill - (217) 321-3004 - schurchill@iiaofil.org

Director of Government Relations Evan Manning - (217) 321-3002 - emanning@iiaofil.org

Education | Teresa Fleming, CIC, CISR (815) 849-5219 | tess@leffelmanassoc.com

Director of Education and Agency Resources Brett Gerger - (217) 321-3006 - bgerger@iiaofil.org

Office Administrator Kristi Osmond - (217) 321-3007 - kosmond@iiaofil.org

Accounting & Admin Services Tami Hubbell - (217) 321-3016 - thubbell@iiaofil.org

Director of Communications Rachel Romines - (217) 321-3024 - rromines@iiaofil.org

Director of Human Resources, Board Admin Jennifer Jacobs - (217) 321-3013 - jjacobs@iiaofil.org

Director of Membership Services Tom Ross, CRIS, CPIA - (217) 321-3003 - tross@iiaofil.org

Sr. Vice President/Chief Financial Officer Mark Kuchar - (217) 321-3015 - mkuchar@iiaofil.org

Products & Services Administrator Janet White, CISR - (217) 321-3010 - jwhite.indep12@insuremail.net

Chief Executive Officer Phil Lackman - (217) 321-3005 - plackman@iiaofil.org

Director of Prof. Liability & Ins. Products Carol Wilson, CPIA - (217) 321-3011 - cwilson.indep12@insuremail.net

Central/Southern Marketing Representative Lori Mahorney - (217) 415-7550 - lmahorney@iiaofil.org

Find us on Social Media

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president's message | INSIGHT

It’s Been an Honor to Serve You As I close out my year as IIA President I reflect on what a year it has been for all of us. We have all been through so much personally and professionally. We have seen health challenges for family, friends and neighbors. We have experienced clients that have been impacted by shut downs, labor shortages, supply chain issues, etc.. Our members have been challenged to service clients. What did we do to respond??? Well, I’m proud to say that in the face of all of that adversity, you stepped up to be there for clients when they may have been having their worst day. You stepped up and allowed employees to work remotely so they could take care of their children who were unable to go to school. We proved to our clients and employees that they were first and there was no challenge that would deter us from being there for them. Despite so much of the year being in a virtual mode, I’m proud of the IIA Team and the IIA Board for making progress on many fronts. We had aggressive goals and through the hard work from many people, we have made great strides. I look forward to working with Jay Peterson to transition these goals and continue the progress we have made this past year. The following details our progress on several areas of focus during this past year. IIAPAC Engagement - As you know, our industry is regulated at the state level. We all benefit from the efforts of Evan Manning, Brett Gerger and Phil Lackman who represent us every day in Springfield. The IIA was instrumental in passing four bills during last session. Again, since every member benefits from this work we need everyone to contribute to IIAPAC. It’s unfair that only 30% of our members contribute while 100% of our members benefit. We made some strides but have a long way to go. With your help we will get there. Education - Our IIA has developed a virtual Pre-Licensing program. A bill was introduced by the IIA and passed that allows virtual pre-licensing to continue. The governor recently signed the bill and we are communicating and marketing to all of our members and beyond. We are asking all to adopt the IIA pre-licensing program as their provider of choice. Diversity and Inclusion - One of my primary goals was to make a true measurable difference on Diversity and Inclusion by focusing on three things. Those three things are listening, recruiting young and diverse talent and mentoring minority owned agencies.

recruiting methods. We need to provide tools for our member agents that provide a blueprint for interviewing, onboarding and mentoring that will allow our member agencies to successfully recruit and grow a young and diverse workforce. Mentoring - We developed a program that will pair some of our most successful agencies with minority owned agencies that will volunteer to receive guidance through a formal program developed by the IIA of IL. We started this pilot and we are making progress. Resources - We are using our IIA resources to provide prelicensing class and licensing fee help to members that hire diverse staff members. Technology - We are committed to technology and have transitioned Technology from a task force to a committee. The technology committee has created a plan to establish an IIA Technology brand identity and communication strategy that can deliver information that will make a difference for our members. Lastly, our goal for the Planning and Coordination Committee was to create clear deliverables for our regional directors that include IIAPAC engagement, CONVO participation and education marketing. In addition, refine the accountability blueprint to ensure all Board and Exec Committee members understand their role so we can maximize the effectiveness of our entire Board. They have done a fine job executing and making a difference. As CONVO approaches, I just want to urge all of you to attend this flagship event. If you have never attended, you will be in for a vibrant event that will blow you away. For those returning members, we will welcome you back and hope you can tell some agency friends to join you in Springfield, October 5-7. It has been a true honor to serve as your IIA President this last year. Thank you to my family and The Horton family for allowing me to share more time with the IIA. Thank you to the IIA exec committee, committee chairs and members, regional and at large directors for their support and selfless service to our membership. Thank you to the IIA staff who represent us so well each and every day. They are truly the best in the business. It’s been a pleasure and an honor.

Listening - We worked with Dr. Lee Nunnery to develop a survey to reach out, ask and most importantly listen to members to receive ideas about how we can create an action plan that will make a positive impact on diversity and inclusion. We developed actionable goals around resources, recruiting and mentoring. Recruiting - Through our task force and with help from our Chicagoland Board and Young Agents Committee we are planning a college recruiting program to attract more young people and diverse candidates to our industry. We are building a creative approach to go beyond traditional

George Daly - IIA of IL President - (708) 845-3311 - george.daly@thehortongroup.com september 2021

insight

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Mergers & Acquisitions Thoughts to Chew On Most agencies will need to consider at some point whether to merge, sell, acquire, or perpetuate from within. Some of the numbers I have seen for acquisitions are borderline crazy - in effect making it nearly impossible for the agency being bought to say no. Personally, I do not think that the current figures being offered are sustainable, but I am not the one offering those figures. When I was at the Department, we always joked that at some point, there will be only one Insurer/Bank/Agency to regulate. It sounds ridiculous, but that could be where we are headed. I’m sure most of Amazon’s competitors did not even realize they were competitors until it was almost too late (Malls). Some agencies face the realization that they must either get on the train or get run over by the train. Too often, agents look to sell because it is difficult to develop an internal perpetuation plan. It is a challenge to find, let alone hire, great talent that could develop into a viable perpetuation plan. Having an agent to mentor and develop into a future owner of your agency is invaluable. Think of all the time, effort, blood, sweat, tears, and years of working for little to no income that it took to build your agency into an attractive business. When someone sees it as attractive enough to offer you a large amount of money to take it off your hands, do you take the money, or do you have someone in place that can perpetuate the business you built and keep it local? The Association has many resources to assist you in developing a plan. In addition to assessment and training tools to help develop existing talent, the Association recently partnered with CareerPlug, which will help your agency find and hire better quality employees to fill the talent void. Now let’s analyze the current models of mergers and acquisitions. Most buyers come in and require current principals to stay on for a period (usually three years). Often, they centralize personal lines in a call center in order to focus on commercial. From the client’s perspective, numbers appear to be more important than relationships. Most of the independent agencies were built on relationships and are sustained on the quality of those relationships. The new super agency may maintain those relationships for a period, but they will be harder to keep at the level they once were, especially after the principal or principals have left. The markets that the new entity brings to the table are typically more expansive than what they were with the old agency. With a greater choice of insurers comes a myriad of coverage options and pricing options that previously weren’t available through the old agency. You now may not have to broker some risks and be able to keep the full commission instead of sharing. With many clients worried about price, these expansive markets allow you to provide very low pricing however, as our members know, lower prices do not always translate into better coverage. Commercial clients are looking for value as well as price – for example, how are claims handled? This point shows that it doesn’t matter if you are a mega-agency or a small mom-and-pop shop because both models can provide the value commercial purchasers seek. One way to compete is to make yourself more valuable by taking

Brett’s 2Sense CISR and CIC classes through the Association to earn your designations which will allow you to ensure your clients are more appropriately covered. Every acquisition presents an opportunity. Some clients will leave the mega-agency, especially after the principal leaves. Some may find opportunities with insureds that want a local feel and an agent that they know personally that is engaged in the community. Some people may want to buy insurance from Brett, a Knight of Columbus, Jaycee, Chamber member, little league sponsor, etc. This reason is why the Association developed the Independent Market Solutions (IMS) platform, which will give start-ups and smaller agencies access to markets in order to compete. Both sides of this coin have issues, and each agency will have to determine the path that they want to take. You must decide what path you want to take and pursue. If you have built your agency with a viable perpetuation plan, you may still be faced with an offer to buy your agency that might be difficult to turn down. There are numerous factors you should consider - How will your clients be affected? How will your employees be treated? How will your community be affected by your agency’s ultimate absence? How will your retirement look? How will your personal relationships be affected? Every agency will have to choose its path, and as an association, we are here to support both paths. We are here to support you through legislative advocacy (no more important than now with what we are seeing in today’s climate); perpetuation and hiring quality individuals; expanding opportunities to increase your markets through IMS; and of course, we meet all the educational needs that you could imagine. My grandfather always said you can skin a rabbit multiple ways, but you still will get rabbit stew at the end of the day. It can be in multiple ways with multiple ingredients. It all depends on your taste. The Association will provide all the ingredients to make a great stew, and those ingredients can be found at www.iiaofil.org . As always, this is just Brett’s 2 Sense, and should you have any questions, thoughts, or ideas for future articles, do not hesitate to reach out to me directly at bgerger@iiaofil.org or (217) 321-3006.

Brett Gerger | IIA of IL Director of Education & Agency Resources bgerger@iiaofil.org | (217) 321-3006 september 2021

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government | INSIGHT

Unland Companies Supports IIAPAC The Unland Companies, based in Pekin, IL, recently celebrated their 80th agency anniversary with an employee cookout at their office.

IIAPAC

Independent Insurance Agents Political Action Committee

During the celebration, Pat Taphorn, IIA of IL Government Relations Committee Chair, and Unland Companies President, gave a brief overview of the benefits the association offers. Taphorn also briefed his team on the Indpendent Insurance Agents Political Action Committee (IIAPAC) and the importance of donating. He encouraged all employees to donate what they could to IIAPAC, and he personally matched their contributions. The team raised over $550! Taphorn presented the check to IIAPAC during the August IIA of IL Board of Directors meeting held at The Horton Group in Orland Park. Thank you to Pat Taphorn and the entire team at Unland for your support! Pat Taphorn, right, with Noele Tatlock, Personal Lines Division Manager for Unland, and Evan Manning (center), IIA of IL Director of Government Relations.

CONVO Silent Auction to Benefit IIAPAC and St. Jude Children’s Research Hospital As announced in last month’s issue of Insight, the IIA of IL will once again be hosting a Silent Auction to benefit IIAPAC and St. Jude Children’s Research Hospital during CONVO, October 5-7, in Springfield. Thank you to those that have already donated these auction items: • Cigar Humidor • Mizuno Golf Bag • Electric Putting Mat • Exotic Golf Bag • Cleveland Wedge • Liquor • Wine and Wine Rack • Johnnie O Shirts • Pappy Van Winkle • Southern Illinois Wine • Threesome to Edgewood Valley Golf Club • White Sox Tickets • Foursome with Carts to Deer Valley

september 2021

The IIA of IL is still seeking additional donations of items, trips, tickets and more, or monetary donations, to add to this list. Contact Evan Manning, IIA of IL Director of Government Relations, at emanning@iiaofil.org or (217) 321-3002 for more information. During CONVO, attendees will have several chances to bid on these items. The auction will close on Wednesday evening during the Big Party. Keep up-to-date on the auction item list at ILConvention. com.

insight

How to Navigate Accessibility Complaints Under the Americans with Disabilities Act By HeplerBroom, LLC Congress passed the Americans with Disabilities Act (ADA) in 1990, with the noble purpose of providing a national mandate to eliminate discrimination against individuals with disabilities. Unfortunately, in the years since its passage, this noble goal has at times been perverted, with some attorneys intent on wielding the law as a moneymaking device and not as a means of ensuring equal access.

are not wide enough (to name a few possible violations). Many of these lawsuits have now shifted to the businesses’ online presence, with these website accessibility lawsuits experiencing the same exponential growth as the overall ADA litigation:

Case numbers bear this out. In the last few years, the growth of ADA litigation has exploded – from just over 2,700 filings in 2013 to more than 11,000 filings in 2019:

See Seyfarth Shaw, ADA Title III, available at https://www. adatitleiii.com/2021/04/federal-website-accessibilitylawsuits-increased-in-2020-despite-mid-year-pandemic-lull/ (last visited July 8, 2021). See Seyfarth Shaw, ADA Title III, available at https:// www.adatitleiii.com/2020/02/2019-was-another-recordbreaking-year-for-federal-ada-title-iii-lawsuits/ (last visited July 8, 2021). Many of these lawsuits are brought by the same plaintiffs, who become serial filers. Some plaintiffs have filed hundreds and hundreds of ADA lawsuits, in courts across the country. Many businesses have come to see these lawsuits as “drive-by” lawsuits, believing that the lawsuits are brought only to extract a quick settlement, and not to solve an accommodation issue. And because fighting a lawsuit in court is almost always more expensive than settling, many businesses elect settlement over litigation, perpetuating the litigation-settlement-litigation cycle.

What Are Websites Accessibility Lawsuits? In an ADA lawsuit, the plaintiff may allege that a given business or public place is inaccessible – because there are issues with the handicap parking, the wheelchair ramps lack the required railings and width, the public restrooms are not handicap accessible, or the store aisles 12

insight

Website accessibility is not limited to a desktop website. ADA litigation has targeted mobile apps and video features, arguing that both websites and the video content appearing on them should include closed captions and audio descriptions. A wave of “digital accessibility consultants” has popped up in recent months, offering quick-fixes in the form of widgets, plugins, and other overlays of website code that promise to remedy the problem. Both plaintiff and defense attorneys seem to agree that these quick-fixes are just that: temporary fixes that do not actually solve the problem.

What do the Courts Have to Say About ADA Litigation? The case law is inconsistent, but there is some indication that federal courts are becoming wary of serial ADA filers and the rapid increase in ADA litigation. In Rib Crib No. 18, the U.S. District Court for the Western District of Missouri consolidated twelve ADA cases, all filed by the same plaintiff and all having virtually identical complaints. Steelman v. Rib Crib No. 18, No. 11-CV-3433 september 2021

RED, 2012 WL 4026686, at *1 (W.D. Mo. Sept. 12, 2012). After determining that the plaintiff lacked standing, the Court found the plaintiff fit the mold of a serial plaintiff and stated its intention to “award each Defendant attorney fees.” Id. at *5. The Western District of Missouri is not alone, as other courts have bemoaned “the growth of a ‘cottage industry’” that has law firms encouraging “‘serial’ plaintiffs to seek out technical violations of ADA regulations” and then “coerc[ing] settlements from the allegedly infringing businesses.” Carton v. Carroll Ventures, Inc., No. 1:17-cv37 KG-SCY (D.N.M. July 10, 2017); see also Hoewischer v. Cedar Bend Club, Inc., No. 3:11-CV-1040-J-37TEM, 2013 WL 1155783, at *3 (M.D. Fla. Mar. 14, 2013) (“[T]his Court feels compelled to note once more that this ‘cottage industry’ has turned the noble mission of the ADA into an ongoing scheme to bilk attorney’s fees which continues to cry out for a legislative solution.”).

as a resource on ADA accessibility issues. Members can submit inquiries through the IIA hotline at www.iiaofil.org/ Products-Services/Legal-Services-Hotline or reach out to HeplerBroom LLC directly. Their attorneys on this website accessibility issue are: Charles N. Insler (St. Louis Office) 314-480-4219 cni@heplerbroom.com Julieta A. Kosiba (Springfield Office) 217-993-7145 jak@heplerbroom.com

There is case law on the other side, however. The U.S. Court of Appeals for the Ninth Circuit – which oversees appeals of federal litigation in several western states, including California – has urged courts to tread “carefully before construing a Disability Act plaintiff’s history of litigation against him,” because serial litigation may be necessary to advance the “promise of equal access for the disabled.” Antoninetti v. Chipotle Mexican Grill, Inc., 643 F.3d 1165, 1175 (9th Cir. 2010).

What Steps Can a Member Take? ADA litigation is both complex and evolving, and has begun to target members of the Independent Insurance Agents of Illinois. Several members have already received demand letters threatening litigation. Navigating these lawsuits and the law’s requirements can be both complex and nuanced, touching on numerous technical issues of both physical and digital access. Fortunately, there are resources at your disposal. The World Wide Web Consortium has compiled Web Content Accessibility Guidelines (WCAG 2.0) for both public and private sector entities. These guidelines are considered the standard for accessibility when interpreting the ADA, having been adopted by several federal agencies. These guidelines are available here: https://www.w3.org/TR/ WCAG20/ If you receive a demand letter, you should plan to contact your IT staff or consultant to get assurances about the scope of your compliance. You will also want to reach out to an attorney. The IIA of IL has teamed up with the attorneys of HeplerBroom LLC to serve september 2021

2021 JM Wilson CF Insurance Insight.indd 1

4/1/21 4:18 PM insight 13

Six Ways Financial Partnering Can Help Independent Agencies Thrive By David Tralka Twenty years ago, traditional banks weren’t a reliable source of capital to finance agency growth and perpetuation. Many institutions just didn’t - and still don’t - understand the agency model. Insurance companies provided some lending, but it was spotty at best. As a result, agencies were left with few viable options besides private capital for financing.

We worked with them to create a perpetuation plan and financing for the buyouts. We analyze an agency’s income potential and long-term viability to help owners assess the value of their agency and determine a fair price. We also advise on the appropriate structure for a perpetuation, from personal buyouts to stock redemptions. In the end, that agency was able to remain independent.

That gave rise to InsurBanc: “The agent’s bank.” Formed by the Big “I” with the backing of W.R. Berkley Company, InsurBanc was created to provide the capital agents require to compete, grow and perpetuate their firms.

2- Succession Plans

With InsurBanc’s 20th anniversary in 2021, it’s as important as ever to build a culture emulating that of the independent agency: A financial partner that truly understands agency value - cash flow, income and credit needs - and tailors solutions like an agent tailors solutions for their clients. One-size-fits-all does not work in insurance - or lending. Recent history has shown what outside financing can do for an agency’s growth. But even though the message remains the same, educating agency principals about capital and why it’s so important is too. Here are six ways partnering with an independent agency bank can take your agency to the next level:

1- Staying Independent Agency merger & acquisition activity continues at a fast clip. And while there is huge demand from third-party acquirers, many agency owners want to keep their firm independent through an internal perpetuation plan. However, transferring control of the company to a new generation is often easier said than done. For example, the owners of a nearly 200-year-old firm wished to stay independent, but two of their partners were retiring. The agency wasn’t sure it could afford to buy out both partners at the same time or if it could make the acquisition price attractive enough that an internal buyout would be preferable to the offer of a large national brokerage. The owners knew selling to a larger firm or broker would maximize the retiring partners’ earnings, but they wanted to explore options to stay independent. 14

insight

It was true 20 years ago and it’s true today: Attracting talented young producers to this industry and preparing them for ownership is an ongoing challenge for agency owners. Banks should play an important role in business continuity by providing the capital to fund a succession plan. Well-crafted financing can make amazing things happen with valuable, long-term employees. Some 28 years after joining an agency as a customer service representative, one of our clients had an opportunity to purchase the firm from the retiring owner. She had gone from customer service representative to president and, ultimately, owner. We provided the initial loan - and after paying it off, she again asked us to finance the purchase of a building for the agency’s offices, which after a remodel has become a showcase for the firm. Agency valuation is a specialty area that few financial institutions have expertise in. It’s certainly important to work with a firm that knows this area well when you’re thinking about acquiring another agency, but it may matter even more when you’re ready to exit the business and need to structure a deal that maximizes your profit while providing the next owner a means to acquire your agency.

3- Inorganic Growth Organic growth is an excellent way to build equity in your firm, but there are times when it makes sense to grow inorganically. Examples include purchasing a book of business, acquiring another agency, adding a producer, investing in new technology, or upgrading your customer service and marketing. For a well-run agency, outside financing can be beneficial. september 2021

Consider a health care-focused agency that recognized a need to diversify and increase its personal lines business. It wanted to acquire a nearby agency with a recognized and seasoned property-casualty book of business that also provided excellent cross-selling opportunities. But the agency needed a financial partner that would view the acquisition as an attractive business opportunity.

4- Perpetuation Options Even if you aren’t ready to sell your agency now, eventually it will have to change hands. Many agency owners haven’t given thought to when or how they’ll perpetuate. These plans take time to unfold—five to 10 years in most cases - and with so many principals nearing retirement, they need to act sooner rather than later to develop a sound, written, well-funded perpetuation plan that establishes agency value and names buyers and sellers. Sometimes, agency owners need to move quickly. One of our clients had prepared a self-funded perpetuation plan, but the timeline had to be accelerated when his health deteriorated. At that point, he decided that it would be best to involve a bank in the funding. After talking to several banks that didn’t understand the agency’s business or how to value it, the owner approached us for the transaction. We were able to act quickly and help develop and fund a revised plan to benefit all parties. Other times, agency owners experience seller’s remorse. They want to stay in the business and regret giving up control too soon. There’s an alternative. In a staged perpetuation backed with outside lending, you sell part of your agency now, but you still own it. Down the road, when you’re ready to retire, you sell the rest. You can have your cake and eat it too.

5- Launching a Firm Over the years, producers who successfully cut their sales teeth under the wing of an agency owner have dreamed of owning a firm. But they face a challenge: Banks are leery of lending to an unknown risk. Take the top producer at a large agency who built a book of business from scratch that is now valued at $1 million. She wanted to start her own agency but needed the capital to purchase the business. InsurBanc understood the commitment of a producer who could grow a book to $1 million. This producer’s niche is in commercial insurance bonds in the construction, habitation and restaurant industries, and her contacts were extensive. A bank that understands the value of a strong producer is more willing to invest in their future and provide working capital than the average bank. Financing the emerging agency owner is key to the future health of the independent agency channel. Many new agencies and brokerages are building strong brands. They are technologically savvy, culturally tight, aggressive and successful.

6- Strategy Changes Independent agencies certainly appreciate the value of a long-term client relationship built around trust. Their commercial clients can pivot, sometimes entering unchartered waters, and they need an insurance partner to back them up. Agents, too, can pivot and they need a lender that already knows them. september 2021

The fifth-generation owners of an agency established in 1869 wanted to rethink their acquisition strategy in a difficult and changing economic environment. They were looking for ways to refinance their debt on more favorable terms with flexible cash management and continue to grow through acquisitions. The principals were driven to stay on track with their ultimate strategy of growth but needed the financial expertise to get there. InsurBanc loaned the capital and has remained a loyal financial partner, providing financing for subsequent agency acquisitions and the purchase of a building. In these competitive and uncertain times, having a strong lending partner can make all the difference in the world. InsurBanc is proud of our beginnings and the collaborative relationship we’ve forged with the Big “I” and its members. What Kind of Bank Do You Need? The insight and planning that comes from a long-term relationship with a bank can be invaluable - especially a bank that understands your goals and the complexities of your business and can help you identify and pursue new opportunities. Your bank should be able to provide a wealth of financial and operational advice. This includes analysis of financial statements and other key business metrics, including important industry trends, benchmarking data, information about the latest deal structures and capitalizations, and suggestions for other professionals you might retain such as an attorney, certified public accountant or investment broker. Your bank should have the tools an agency needs to analyze income and expenses and forecast future cash needs. Accurate and timely financial reporting will allow you to make more informed cash-management decisions, improve efficiency and maximize your revenue. Also, are you paying attention to quality of earning (QOE)? This is an important measurement of your agency’s sustained earning power. It’s also an indicator buyers look at closely when they make an offer. All the moving pieces in your agency can contribute to building value, and you need a bank that understands this. A bank should know your business and your borrowing needs. A lender should be able to analyze and recommend growth opportunities. It should understand the strategic significance of acquiring new business, as well as the urgency often required in putting together a deal. A long-term banking relationship can have practical benefits, including greater convenience, higher levels of service, better rates and lower fees. Find a bank that truly wants to be your ally and has your best interests in mind. David Tralka is the president and CEO of InsurBanc and is responsible for keeping the bank focused on being an innovative provider of financial products and services for the independent agency community. An expert on agency mergers & acquisitions, agency perpetuation and financing, he has presented at numerous venues nationwide. Go to www.insurbanc.com for details on InsurBanc.

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Aggregators, Alliances, and Clusters

What’s the Difference?

The IIA of IL independent agency landscape has seen many changes over the years, but none more than the development of interagency relationships via groups, clusters, and aggregators. The creation of these models has served the needs of many independent agents through carrier access, scale, pooling of resources, training and education, marketing, and in some models, underwriting and placement support. But what is the difference? While all three terms are sometimes used interchangeably to describe agents combining or joining together to increase the benefits, the most significant difference is in the contract agreement. The IIA of IL has created a worksheet that includes questions for you to consider contractually and relationally when researching the potential of partnering with an aggregator or cluster. These models vary in structure and contractual obligations, so it is important to remember it is not “one size fits all,” and what works for some agents may not work for you. Market aggregators provide agencies with a variety of shared resources, access to markets and niche programs, opportunities to obtain direct company appointments, and a chance to share in the network’s profitability. In return, these networks usually ask agents to pay a percentage of commission, a membership fee, or require them to give up a small stake in the value of the book of business built up through the aggregator. Be sure to review the contractual 16

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relationship with these entities carefully, especially as they relate to book ownership, commission or revenue sharing, and exit costs. Thinking of Joining an Aggregator or Cluster? Visit the IIA of IL Solution Center and download the worksheet above to evaluate the benefits and contract provisions when evaluating a partnership opportunity. The IIA of IL has compiled a list of Aggregators, Alliances and Clusters as a starting point for agency research on these programs. Both the worksheet and the list can be found in the IIA of IL members-only Solution Center at www.iiaofil.org/solutioncenter. september 2021

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e INSIGHT -

online journal at www.iiaofil.org/Resources/Insight

SE PT EM BE R

20 21

INSIGH T

MER ACQUGIERS & S Weigh ing All ITIONS Optio ns

Plus

How to Naviga Accessib ADA ility Cote mplaints

Education

Lineup

In this month’s e-Insight.

Insurance M&A Outlook

Powering Through

Disruption

By Deloitte september 2021

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Weighing

OPTIONS

IIA of IL Member Agents Give Their Perspective on Not Selling

By IIA of IL Staff

M&A activity has increased year over year for the past several years, both nationally and in Illinois. Agencies all over the state have undoubtedly been approached by multiple entities during this time with lucrative offers. What factors are considered when determining the future of your agency? IIA of IL members share their insights in this article. We understand that each agency is different, and there are pros and cons to merging. For this piece, it is interesting to hear from agencies that have chosen to stay with their original business plan.

Why have you chosen to remain “independent”? We communicate periodically with those that are in an acquisition mode so that we remain aware of what is going on in our industry. There are as many models for agency acquisition as there are acquirors, so it is important to realize the reasoning behind their interest and how we fit into their operation long term. Almost without exception interest is driven by business decisions surrounding a return on investment and long-term value to the organization. We understand why TROXELL would be an attractive candidate for acquisition, but we feel our primary responsibility will always be to our customers followed very closely by care and consideration of our staff and their families. We feel strongly that independent, local ownership is key to maintaining the level of customer care and interaction we believe is so important in understanding and serving our clients in a manner that is demanded by the size marketplaces we serve. Often times the importance of client service and care for staff can seem secondary to profitability and value and so we have decided that the best way to continue to be able to make the right decisions to maintain our focus on our clients and staff while making the necessary business decisions to ensure our long-term viability is to remain independently owned. - John Eck, Jr. – TROXELL, Springfield We are approached no fewer than twice per week from both aggregators and Venture Capital players to either sell or merge. Although we haven’t gone through the process, the numbers we are hearing are almost insane. When we started Connor & Gallagher 24 years ago it was because we wanted to be independent. Within the first 6 years we started hiring people we felt could perpetuate the agency internally. Over the course of the next ten years, we made commitments to those individuals (and their family’s) that we would follow through on that promise. Five years ago we started the execution of the perpetuation plan and are confident it is the right decision and will be successful. - Tom Connor – Connor & Gallagher Insurance, Lisle Mission over Profit. I did not inherit my agency. I did not start my agency because I thought it would make more money than I could by working for a large broker. I started my agency because I wanted to do the business in a way I did not believe I could do it working for a company. Every day, I wake up believing that my company is better than my competition. Every day is a new day to prove it. When I stop believing that I will sell, however, I don’t think I will ever stop believing that. - Matthew Cooper – Inner-City Underwriting, Chicago An independent agent has partnerships with insurance companies to offer insurance solutions at the BEST VALUE. - Wil Salvador – Salvador Insurance Agency, Chicago Yes, I’ve been “approached” numerous times, but there’s never been an “offer”. I’ve never gotten to that point in any discussion. I’ve chosen to remain “independent” primarily because I wanted to first see if there could potentially be perpetuation of the agency through family and/or internal purchase. I did have a discussion with a potential purchaser that I sought out about 7 years ago, so I did have something in place IF I chose to sell. - Dan Imming – Imming Insurance Agency, Carlyle

Is there a perception in your community that being acquired impacts your “independence” and commitment to the community? I think this is a natural reaction from the community when any local/family-owned business sells to a new and perhaps unknown entity, many times from outside the community. The concern over the unknown causes what happens next to be scrutinized very carefully by clients and the community as a whole. Experiences are shared, grievances are talked about and eventually skepticism surfaces as to whether things will “be normal” going forward. Maintaining the same level of community support when the decision-making process often involves individuals from outside the marketplace seems challenging and likely to be affected at some point in the future if not immediately. - John Eck, Jr. – TROXELL, Springfield I believe there is. I think many of the local entities we engage with are very comfortable dealing with an organization that promotes and supports local ownership. - Tom Connor – Connor & Gallagher Insurance, Lisle Yes. Regardless of what is promised to you when you sell, the only thing you can control in an acquisition is how much money you receive. I have acquired an agency, and I know you must make hard decisions after merging the book of business and customers. Because I was in charge, we changed the company’s operation to meet the goals and objectives of my organization. We paid every dollar we owed, but we ran the business the way we wanted to run the business. For the clients we acquired, we sold them on our way of managing their insurance. Most liked our approach and stayed. Some did not and left. When you sell, you are not independent. You are an employee, hopefully, a highly paid employee but still an employee. - Matthew Cooper – Inner-City Underwriting, Chicago There could be a disconnect from the community if the agency does not continue to be involved in the community events. - Wil Salvador – Salvador Insurance Agency, Chicago I don’t know if any perception actually exists, but I feel strongly that “name recognition”, family longevity, and being visible and known in the community for decades does relate directly to the success of the agency. An outside purchaser could potentially change the attitude of existing employees, perception of customers and change the overall “feel” of the community. (That could turn out to be positive or negative.) - Dan Imming – Imming Insurance Agency, Carlyle

Will the reputation and philosophies of the agency remain the same with the carriers and the insured’s clients? The philosophies of the agency will certainly be influenced by new factors and individuals which quite likely will adjust for better or worse the core philosophy of the agency in an acquisition. We would hope that key carrier relationships would remain and likely tie into some of the acquiring firm’s carrier partners quite nicely. In certain cases, lesser relationships would likely be consolidated into continued...

september 2021

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more strategic carrier partnerships and so some longer-term partners would likely be replaced bringing the historical relationship to an end. Treatment of clients would be a bit up in the air since acquisition is typically focused on improving margin in the target agency. This could easily lead to a different experience for the client which they may feel no longer meets with their expectations possibly leading to a loss of loyalty. - John Eck, Jr. – TROXELL, Springfield I think once a sale is consummated, and the transition is complete that changes are inevitable. Cost cutting including staff reductions impact service levels as well as continuity with producers and their clients. The carriers are another story. I think the Independent agent has to make sure they are staying engaged with carrier management so as not to become the forgotten fish in the M&A pond. I truly believe that insurance carriers love the truly independent agent but also have their bottom line to contend with. We have to make sure as a group that we stay relevant to our carrier partners. - Tom Connor – Connor & Gallagher Insurance, Lisle That also could be challenging if key personal and agents do not remain with the agency. - Wil Salvador – Salvador Insurance Agency, Chicago I do fear that a couple of carriers could change their overall mindset if our agency was sold, and our unique philosophy regarding the focus on “service above self” (taken from Rotary) could potentially change with new ownership. - Dan Imming – Imming Insurance Agency, Carlyle

What are your biggest concerns/drawbacks to your agency being acquired? Will the carriers and employees remain unchanged? Understandably, acquiring firms would be looking for improved margins through continued revenue growth and efficiencies in expense structure. It is hard to imagine a scenario where small commercial and even personal lines business would be done consistently through such a transition. Staffing would most likely be affected through consolidation of certain functions/departments and so as a result the day-to-day operations of the pre-acquisition would most definitely be different going forward. - John Eck, Jr. – TROXELL, Springfield Our biggest concern is our culture. We have spent years developing what we feel is one of the best cultures in our industry. I truly believe that in a moment’s notice that would disappear. We love our staff and always want to continue to steer the ship on their behalf. Our employees are engaged in our decision-making process which makes them feel as if they have ownership which I believe would dissolve in an acquisition. - Tom Connor – Connor & Gallagher Insurance, Lisle Not being able to run the business the way I want to run it. Your relationship with employees and carriers changes. You must manage within the framework of a larger organization with its relationships and way of managing employees. - Matthew Cooper – Inner-City Underwriting, Chicago My employees and my clients. I don’t want the “service”, that we have always provided, to decrease in any way. Our employees need to be taken care of. - Dan Imming – Imming Insurance Agency, Carlyle september 2021

Besides monetary, what are the biggest benefits to an acquisition/ merger of your agency? Certain agencies would gain things like better financial management/oversight, carrier access, industry expertise through different practice groups and in most cases probably access to products and services to offer clients surrounding their commercial insurance program including Human Resources, Loss Control, Claims Review, Compliance and certain tools and resources to supplement the stewardship process. - John Eck, Jr. – TROXELL, Springfield I think the biggest benefit to a smaller agency is the expansion of service offerings. I believe we have most of the services we need but also know that there are services that would allow us to expand what we can do now. I think a lot of offerings are a perception on the part of the agency’s prospects more so than the reality of the services they need. It would probably allow us to look at larger entities with multi-national exposure that we shy away from now. - Tom Connor – Connor & Gallagher Insurance, Lisle Money is the only benefit to an acquisition unless you are tired of managing the business and want to retire and can’t find someone you trust to take your business into the next generation. - Matthew Cooper – Inner-City Underwriting, Chicago More options to offer clients. - Wil Salvador – Salvador Insurance Agency, Chicago Our goodwill, our reputation, our trustworthiness, our mindset, and our employees. - Dan Imming – Imming Insurance Agency, Carlyle

What are the significant factors that must be address for a successful merger? Owner and producer comp would likely top the list with day-to-day management and process and procedure review to start the list. - John Eck, Jr. – TROXELL, Springfield How many decisions can be made at the agency level and for how long? What are the multiples offered in the transaction? How many and what positions will be eliminated? Would we be required to relocate? If there are terminations required, what does the separation package look like? - Tom Connor – Connor & Gallagher Insurance, Lisle The owner’s ability to transform from owner to employee. The agency’s staff to adjust to new HR policies and practices. - Matthew Cooper – Inner-City Underwriting, Chicago The employee retention and client communication of the merger. - Wil Salvador – Salvador Insurance Agency, Chicago Mindset, philosophy, what’s best for the customer, will the employees be taken care of, do the right thing. - Dan Imming – Imming Insurance Agency, Carlyle

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The Difference Between Selling Your

Book

Selling Your

Business By Alan Grayson

After many years of being an independent agent, you may be considering retiring. Your book of business has grown substantially over the years and if you sell it, you can retire. Most independent insurance agents automatically consider selling their book of business - but what about selling your insurance business as a single entity?

Why Sell Your Agency?

There are pros and cons to selling your insurance business versus selling your book of business. Here are three questions to consider before you retire:

Your book of business is the product of all of you and your team’s hard work. What if you could sell your hard work with your book of business? As the saying goes, “The whole is greater than the sum of its parts.” The whole of your insurance agency is worth more than liquidating your business assets and selling them piece by piece.

Why Sell Your Book of Business? Some buyers may want to only purchase your book of business rather than your whole business. As a result, you may not have to close your independent insurance agency when you sell your book. There are a few reasons you should sell your book of business instead of selling your insurance agency. First, it is difficult to sell a company that is losing money. If your business is not profitable, it might be best to simply sell your book of business. Another reason it is beneficial to sell your book of business is that you may be able to continue to sell insurance. Of course, this depends on the terms of your non-compete. You may be able to pursue other lines of insurance and still have all the marketing materials, employees, buildings and office supplies to run your business. Selling your book of business—or even part of your book of business—means you can continue operating your insurance agency. Selling your book of business might be a step toward liquidating your agency. After you sell it and decide to close your agency, you can sell your office supplies as well as your building if you own the property. However, selling your insurance agency through a liquidation process can be tedious.

There are pros and cons to selling your insurance business versus selling your book of business. 24

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Selling an insurance company as a whole also has benefits. Selling your insurance company is usually more profitable than selling your book of business and, once it is sold, you have fewer responsibilities to the insurance agency.

Selling your insurance agency allows you to make a profit on aspects of your business you would not be able to liquidate. For instance, your marketing is a large part of your agency. Selling a website, email list, or branding and logo is difficult if it does not have the rest of the insurance agency and book of business.

Which Is Better? Selling your insurance agency as a whole is usually the best option if you own a profitable insurance agency. It will lead to a greater return - and your employees will likely keep their jobs when the new owner takes over and your business is able to continue existing. While it is rewarding to sell your assets, finding interested buyers and negotiating every asset sale takes time. If you are looking to retire and close your independent agency, you should first consider selling your business as a whole. This will allow you to retire comfortably and remove many of your responsibilities to your insurance agency. You can sell your insurance agency yourself or you can hire a business broker to sell your company. Alan Grayson is the marketing manager and content producer at Synergy Business Brokers. He can be reached at alan@synergybb.com or visit the Synergy Business Brokers website at www.synergybb.com.

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So You’re Thinking About Selling (or Buying) an Agency? By Richard Lund At some point in your insurance career you may have to decide, is it time to sell my agency? Or, if you’re making a transition in your insurance career, the opportunity arises to consider whether you should purchase an agency? In both situations, one of the most overlooked and under considered aspects is what to do about the E&O policy. A while back we presented a webinar with industry professionals about the entire aspect of selling or buying an agency. “Agency Risk Management Essentials: Navigating the Hazards of Buying, Selling and Merging an Agency” is available on the E&O Happens website under the “News & Publications” tab in the “Risk Management Webinars” section. If you are thinking of selling or buying an agency, start there so you can learn about those things that you should consider BEFORE you take that big step. What you do about the E&O policy is very important for you as the seller or the buyer to decide. Do you transfer the policy from the seller to the buyer, or does the seller purchase an Extended Reporting Period (ERP)? Does the buyer purchase a new E&O policy? What makes the most sense? What are the ramifications? In either case, the considerations for each party are different. As an E&O carrier, we want both to be aware of their options in order to make an informed decision. If you have decided to transfer the policy from the seller to the buyer, we will want the seller to acknowledge the following: • I have been offered to purchase an Extended Reporting Period for my Insurance Agents Errors and Omissions Policy, and after full consideration I am declining to purchase the Extended Reporting Period. • I agree to transfer of the policy to the buyer. • Upon transfer of the policy I understand that I will no longer have control of the policy effective on the date of transfer. • The buyer may terminate the policy at any time and I may no longer have coverage for any E&O claims that may be made against me or my agency after that time.

For the buyer, we will want them to acknowledge the following: • I am aware of the claims history of seller. • I agree that I will assume the liability for all prior acts, errors or omissions that might lead to future claims being made against the seller. • I agree that I will make any future deductible payments as required under the policy for existing or future claims made under the policy. • I agree that coverage for any and all claims prior to the date of transfer of the policy will be covered under the policy and subject to the terms and conditions of the policy. • I have been advised that the seller has been given the opportunity to purchase an ‘Extended Reporting Period’ for the policy, but has declined that offer. • Moreover, I have been advised that, in conjunction with the seller’s purchase of an Extended Reporting Period, I could apply for a new errors and omissions policy that would exclude coverage for any and all prior errors or omissions, and after due consideration, I am declining to make such application. Before you decide to either sell your agency or buy an agency, be sure to take the time to consider all possible outcomes regarding the E&O policy. The old saying -an ounce of prevention is worth a pound of cure -- still applies. Richard F. Lund, JD, is a Vice President and Senior Underwriter of Swiss Re Corporate Solutions. He has been an insurance agents E&O claims counsel and has written and presented numerous E&O risk management/ loss control seminars, mock trials and articles nationwide since 1992.

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders. september 2021

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The Human Aspect of M&A Integration

By Marsha Lewis

History boasts countless examples of loyal soldiers, athletes, and citizens in difficult predicaments that choose to rally behind their leaders and forge on rather than crumble. What do these tales have in common with Mergers and Acquisitions? Well, similar to the above scenario, captivating and capable leaders during times of post-merger integration have the ability to rally nervous employees and get them to buy into a new vision. The lesson here is a simple one related to human nature: people will follow the leader if they believe in the leader and his/her mission.

How Employees Can Drive A Successful M&A Post-Merger Integration Because robust M&A integration best practices are essential for maximizing deal value, post-merge integration planning and the integration team’s participation need to take place long before the deal is announced. More and more M&A practitioners are understanding this, but

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post-merger integration operations (even those at major acquirers) still miss the mark because the all too important “people” factor can get lost in the shuffle of modern business life. This misstep can lead to loss of employees and clients during the very critical early days of post-merger integration process when competitors tend to go after both employees and clients of the target company. With this in mind, integration practitioners need to be ready to execute and communicate on day one important information about targets, employees’ positions and benefits, and the future of the company.

Five Industry Proven Practices Your Team Can Create A Successful, PeopleFocused M&A Integration Since strong employees are key to a company’s success, here are five industry proven ways for your post-merger integration team to create a successful, people-focused integration: september 2021

1. BE THERE ON DAY ONE AND FOCUS ON THE EMPLOYEES

When the acquisition is announced on day one, your M&A integration team must be present at the acquired company’s offices. Sometimes the employees of the target company do not know anything about the deal until the announcement is made. You, and your integration team, need to be on site to answer any and all employee questions. You must remember these employees have their own lives, families, and unique situations that are supported by their current jobs; they will be feeling a wide range of emotions, and they will need guidance and information. Fortunately, there are small things you and your team can do to connect on a comfortable and genuine level with these employees. For example, find out ahead of time the culture and the dress of the office; the last thing you want is to show up in a suit only to find the office is very business casual. In this type of situation, employees may be too embarrassed or uncomfortable to come sit and talk with you because of their dress - if they didn’t know about the deal beforehand, they would not have been expecting visitors. In addition, we recommend you walk the halls and try your best to socialize with the employees. Find out as much as you can about the people in the business. Finally, be sure to bring business cards and provide the employees with your contact information so they can reach out to you as questions and concerns arise.

2. ASSESS THE CURRENT LEADERSHIP AND ITS CHANGE MANAGEMENT CAPABILITIES Similar to the above sentiments, as you get to know the people involved in the business, you also need to get a good feel for the top managers and if they are ready and open for change. Do they have what it takes to help you, the acquiring company, implement change? Do they have strong change management skills? Do they have what it takes to get employees to buy in to a new target?

3. ELIMINATE THE “UNDERDOG” MINDSET When you close an acquisition, you need a winning team mindset. This suggests you need to share with the acquired company your target and the belief that this target can be met. The last thing you want is for the acquired company to have any sort of “underdog” mindset, stemming from the notion that the acquired company and its functions are less valuable because they were able to be acquired. It is essential that all parties involved in an acquisition feel empowered to contribute to the newly formed organization’s success. september 2021

4. REMEMBER THAT LITTLE THINGS MEAN A LOT An example of this concept can be evidenced in an acquisition between two large established companies. Both companies’ employees are unsure what the acquisition means to their positions. What, if anything, would change about their day to day work routines? Would they still work with the same people? Conduct projects in the same way? These feelings of uncertainty, while natural, could have been easily addressed and somewhat reduced through stronger integration practices - namely, practices that remember it is the people who make a business thrive, and therefore, the people need to have a winning mindset, not one clouded by uncertainty and an underdog mentality. Addressing seemingly small questions upfront, such as day to day changes, helps to ease the tensions that come along with mergers and acquisitions, making for an overall smoother post-merger integration.

5. MAKE SURE THE RIGHT PEOPLE HAVE ACCESS TO KEY INFORMATION VDRs and project management platforms, such as DealRoom, help to ensure all stakeholders have access to important information throughout the life cycle of the deal, which significantly helps with integration planning. After day one, the flow of this information often slows down, but this information and how it is shared is still vital to ensure a successful M&A integration. Having a user-friendly, intuitive, secure platform for dispensing information is key. DealRoom M&A integration software is especially helpful for M&A integration planning and execution because of its features related to efficiency. For example, DealRoom eliminates duplicate requests - a thorn in the side of busy stakeholders. In addition, DealRoom’s improved visibility across a project aids the M&A integration process from the initial stages. Specifically, items for integration consideration can be easily tagged for future use. While VDR use is common for assessing deals, choosing a VDR like DealRoom that offers practical tools to assist with successful integration is the wise business choice in the world of M&A.

Conclusion Recognizing and cultivating the human aspect of integration are essential aspects of successful mergers and acquisitions. Strong, respected leadership that can articulate company goals and clearly demonstrate the value each employee brings to the achievement of these goals is critical to positive M&A outcomes. Marsha Lewis is the Director of marketing at DealRoom, an M&A lifecycle management software designed for collaboration and responsiveness. Combining project management features with a virtual data room, DealRoom allows you to manage M&A processes in one place. Eliminate data silos, easily collaborate, and have an overall quicker response rate. Learn more and schedule a free trial at dealroom.net.

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Insurance Agency Valuations at All-Time Highs By Harrison Brooks While much of the world hit pause during the COVID-19 pandemic, insurance M&A activity continued to accelerate. As the public markets become increasingly volatile and political and economic uncertainty abounds, equity investors and banks are seeking safe havens. One such haven is insurance brokers. Often touted as recession resistant (their revenue only declined 2% in 2009!), insurance brokers have generated positive organic growth

throughout the pandemic. They even achieved a record 7% organic growth in Q2 2021 as reported by Reagan Consulting’s Growth and Profitability Survey. Buyers continue to pursue acquisition prospects, raising additional debt and equity capital to fund aggressive acquisition pipelines. The chart below highlights rising M&A activity levels and agency valuations expressed as a multiple of revenue:

Deal volume from S&P Global Market Intelligence. Valuations for quality $3-$6 million brokers at an assumed 33% EBITDA margin (i.e. pre-tax profit margin). 28

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september 2021

Today, high quality agencies are attracting premium valuations above 4x revenue on a fully earned basis. A traditional deal structure includes both a guaranteed payment at close and a growth bonus which is typically paid three years after the deal closes.

• Geography: Buyers seek agencies in growing markets as the agency will directly benefit from serving and growing alongside its communities. Agencies in large metropolitan and business friendly environments typically warrant the highest purchase prices.

The proliferation in the size of the buyer universe is playing a pivotal role in both increasing valuation and deal activity. There are now over 40 active buyers of insurance agents and brokers in the U.S., including private equity firms, compared to five in the late 1990s. Now, more than ever, it has become easier for both buyers and sellers to find an attractive partner.

• Specialty Expertise / Proprietary Programs: Agencies with a niche or exclusive program that a buyer can leverage across its organization enable a buyer to stretch on valuation and deal structure.

But what do buyers look for in a premier agency acquisition? Beauty is in the eye of the beholder…. By focusing on the following characteristics, agencies can maximize their value. • Organic Growth: Considered a gating issues for buyers, agencies with a consistent organic growth rate (commission and fees exclusive of acquisition and contingent income) of 5% or more generate the highest valuations. • Proven talent acquisition history: Buyers recognize that insurance agencies are people driven businesses and therefore agencies are only as good as their underlying talent and ability to recruit high-quality production and service professionals. • Age of employees: A key indicator of future growth is the age of an agency’s employee workforce. A young and vibrant workforce best positions a firm to respond to an evolving insurance market and consumer base.

While much of the world hit pause during the COVID-19 pandemic, insurance M&A activity continued to accelerate.

• Sustainable Profit Margin: Too often a seller will try and maximize bottom line profitability in an effort to boost guaranteed purchase price. Buyers, however, will see right through this when analyzing the business. Agencies should instead present a sustainable margin that will allow growth well beyond close of the transaction. Although these strategies are suggested pre-requisites for a strong valuation, timing also plays a role in a transaction’s bottom line. The Biden administration has made it clear that capital gains and corporate tax rate hikes are on the horizon for either late 2021 or 2022. All eyes will be focused on Washington when Congress is back in session and determines exactly when these increases will go into effect. In the meantime, more sellers are coming to the market, and Reagan, as an active player in the M&A market, is seeing buyers’ pipelines fill up. If you’re considering buying or selling or if you’d like to discuss the valuation of your agency, please contact Harrison Brooks, a Reagan Consulting Partner, at harrison@reaganconsulting.com.

Hear more from Harrison Brooks during his presentation at in Springfield on October 6. ILConvention.com

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iia of il

! k c a B e r ’ e ! October 5-7 W n o s r e P Crowne Plaza, Springfield, IL n I Together we are Independent Agents. Together we are stronger.

Learn Together.

Earn Up To 12 Hours CE!

We believe investing in yourself as an insurance professional is the best way to ensure career growth and expand your knowledge base. Depending on what you are looking for, either learning more about the industry’s top trends and issues, or meeting your CE requirements for the year (or possibly a little bit of both), CONVO education sessions will meet your needs. Learn about the latest topics and news that matter most to you from leading experts and your peers while earning up to 12 hours of IL continuing education credit.

Education Session Schedule Tuesday, October 5

1:00 – 4:00 p.m. - E&O Mock Trial (Nicole Broch) - Includes IL Ethics CE Credit - Time Management (TBD)

Wednesday, October 6

(all classes listed are filed for IL CE) Wednesday, October 6- Concurrent Sessions

8:00 a.m. – Noon General Session - Future of the Industry and Key Trends of Today’s Marketplace (Harrison Brooks) - Stories, Not Statistics (Alyson Van Hooser) - IIA of IL Award Presentations

1:00 – 4:00 p.m. - Had I Been on THAT Jury ( Rick Pitts) 1:00 – 2:00 p.m. - Legislative and Regulatory Update (Evan Manning) 1:00 – 2:00 p.m. - Five Key Action Items to Win in Today and Tomorrow’s Marketplace (Harrison Brooks) 2:00 – 4:00 p.m. - Own Your Sales Success in a Multi-Generational World (Alyson Van Hooser) 2:00 – 3:00 p.m. - Homeowners/Homesharing (Chuck Schlager) 3:00 – 4:00 p.m. - EPLI (HeplerBroom)

Cyber and Health Coverage Classes Being Scheduled!

Thursday, October 7

8:30 – 11:30 a.m. - State of the Association Address and Carrier Executives Panel 30

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E&O Mock Trial

Session Highlights

tion p i r c es d n o i ! s Upon completing this session, participants will: e s t i e s s b • Understand the perils associated with not properly updating coverage l al we n.com • Recognize the importance of properly completing certificates of insurance e w e h i t V • Identify the problems that changes in operations can present on onventio • See the potential problems with electronic communications • Learn how an insurance claim is calculated when property is not insured to value ILC This session, which qualifies for Ethics credit, is designed to show how mistakes made by an insurance agent are portrayed in a court room setting.

• Understand the E&O exposure from not properly handling an account • Serve as a jury for the proceeding after hearing the facts

General Session: Key Business Strategies for Today’s Marketplace and Stories, Not Statistics Join IIA of IL Chairman of the Board George Daly and presenters Harrison Brooks and Alyson VanHooser as they share key details successful agency leaders need to know, including trends that are shaping today’s marketplace and how leaders and employees can successfully navigate the different generations in the workforce. Daly will update members on the association’s key initiatives, explore the industry’s challenges and successes over the last year, and honor the association members that stood out. Attendees will also hear perspectives from the national association, presented by IIABA Executive Committee Member Michael McBride, JD, president of Mason-McBride, Inc. in Troy, Michigan. Harrison Brooks, partner at Regan Consulting, is prepared to share insights on key trends in the marketplace and how agencies can keep pace with the change. Despite the tumultuous events of the past year, the insurance industry continues to thrive. Valuations are at all-time highs. P&C pricing and the economy are driving peak organic growth rates. Brokers are consolidating at record levels with scale as a key driver. Insurtech moves are happening. Yet, producer recruiting and development remains a key challenge. Learn how agencies can continue to experience success in this fast-paced environment. In addition to adapting to changes in the industry itself, insurance industry leaders are scrambling to figure out how to lead, influence, and impact a generationally diverse workforce. It’s been a struggle for decades, and the challenge is increasing! Alyson VanHooser will share her future-proof leadership success strategy in “Stories, Not Statistics.” Creating a deep connection is the foundation for success - whether it’s between you and a customer, or you and a team member. To begin building an authentic connection with people of any generation, you must start with the stories, not just statistics. It’s in a person’s individual stories, we will find answers to exactly what motivates and drives them.

Had I Been on THAT Jury This three-hour continuing education class is interactive and fast paced. Participants sit as “jurors” and decide personal lines and commercial coverage and liability cases (all of which have been decided by appellate courts within the last few years). The participants deliberate and then compare their verdicts to the result in the real-world case on which the case is based. The actual outcome of the case and lessons to be gained from it are discussed.

Own Your Sales Success In A Multi-Generational World The challenge of selling and serving up to five generations of customers can be daunting, but it’s a challenge worth overcoming. Mutual understanding is the answer to your next right step and adaptability gains you access to success. In this breakout session, you will: • Gain clarity on who and what is motivating different generations of customers • Understand when, why, and where to build a connection with all 5 generations • Learn how to communicate with different customers in a way that is most comfortable for each generation of customers • Discover the best listening process to connect with customers • Breakdown the 5-step process for Earning the Right to Be Heard™

State of the Association Address and Carrier Executives Panel IIA of IL leadership will address the trends and challenges facing the independent agency system and what the association is doing to stay ahead of the curve and provide a sustainable competitive advantage for member agencies. IIA of IL Chairman of the Board, George Daly, will lead an informative and lively discussion with four leading independent insurance company executives on challenges and trends in the industry and members will have the opportunity to ask questions during the open forum. The executives will cover topics ranging from pandemic related concerns to how companies are navigating issues such as weather pattern changes, competition from direct writers, and an increasing number of technology vendors offering solutions for the industry. This is a great opportunity for members to hear directly from thought leaders in our industry. Participating on the panel are Dan Connell of Pekin Insurance, Rich Meuret of Liberty Mutual, Jim Schwalen of West Bend Mutual Insurance, Jamie Whisnant of AutoOwners Insurance.

Details & Registration at ILConvention.com

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INSIGHT | associate news Thank you to our Associate Members.

Diamond Level

Platinum Level

Progressive Surplus Line Association of Illinois

Gold Level AAA Insurance Arlington/Roe Blue Cross/Blue Shield of IL Keystone Insurance Group, Inc. Pekin Insurance

Silver Level Grinnell Mutual Reinsurance Company Imperial PFS

IMT Insurance West Bend Mutual Insurance Co.

Bronze Level A. J. Wayne & Associates AMERISAFE Auto-Owners Insurance Co. Badger Mutual Insurance Company Berkshire Hathaway Guard Insurance Companies Chubb ClickVSC Columbia Insurance Group Continental Western Group CRC Group Donald Gaddis Company, Inc. Donegal Insurance Group EMC Insurance Encompass Insurance Encova Insurance Foremost Choice Property & Casualty Foremost Signature Auto & Home Forreston Mutual Insurance Company Frankenmuth Insurance Grange Insurance Homeowners of America Insurance Company Illinois Mine Subsidence Ins. Fund Illinois Public Risk Fund Indiana Farmers Insurance 32

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Insurance Program Managers Group J C Restoration J M Wilson Kemper Liberty Mutual/Safeco Insurance Madison Mutual Insurance Company Marsh, Berry & Company, Inc. Maximum Independent Brokerage, LLC Mercury Insurance Group Midwest Insurance Company Nationwide Previsor Insurance RT Specialty - Naperville ServiceMaster DSI Society Insurance Specialty Risk of America Travelers UIG - The Agent Agency United Fire Group Utica National Insurance Group W. A. Schickedanz Agency, Inc./Interstate Risk Placement Western National Insurance Westfield september 2021

associate news | INSIGHT SECURA Insurance Named on Fortune 2021 Best Small and Medium Workplaces List

SECURA Insurance was named on the Fortune 2021 Best Small and Medium Workplaces list for the sixth consecutive year. The company took the No. 44 spot on this year’s list. The rankings are based on employees’ feedback and reward companies that best include all employees, no matter who they are or what they do for the organization. “We’re proud to be recognized on the Best Small and Medium Workplaces list once again,” said Garth Wicinsky, SECURA Senior Vice President and Chief Administrative Officer. “Our people all play important roles in keeping our workplace culture strong.” The Best Small and Medium Workplaces list is one in a series of rankings by Great Place to Work and Fortune based on employee feedback from Great Place to WorkCertified organizations. Great Place to Work and Fortune also ranked SECURA No. 11 on the 2021 Best Workplaces in Financial Services & Insurance list and No. 38 on the Fortune Best Workplaces for Millennials 2021 list.

J.M. Wilson Hires Chalus as Assistant Transportation Underwriter

J.M. Wilson has announced the addition of Eric Chalus as Assistant Transportation Underwriter in their Arlington Heights, Illinois office. Eric is responsible for assisting underwriters with a wide variety of new and renewal commercial transportation accounts, as well as maintaining relationships with carriers and independent insurance agents in Illinois and Iowa. Prior to joining JM Wilson, Eric worked professionally in journalism and sales. He also coached for Augustana College, where he earned a Bachelor of Arts in Multimedia Journalism/Mass Communications. Founded in 1920, J.M. Wilson is a Managing General Agency and Surplus Lines Broker providing independent insurance agents access to specialty markets. J.M. Wilson can provide coverage for standard and hard-toplace Commercial Transportation, Property & Casualty, Brokerage, Marine, Personal Lines and Surety. For more information about J.M. Wilson, call (800) 6665692 or visit www.jmwilson.com.

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INSIGHT | agency members in the news Dasco Insurance Agency Celebrates 50 Year Anniversary

the agency provides home, auto, valuable possessions, and umbrella policies as well as any specialty personal lines.

Dasco Insurance Agency is celebrating 50 years of business. Dasco is a family run agency serving the North Shore and Chicagoland’s insurance needs since 1970. David Samson is the founder and Chairman of the Board of Dasco. David established Dasco Insurance Agency in July of 1970 as a Property & Casualty agency specializing in Commercial Lines and high net-worth Personal Lines. For over 50 years, David has grown the agency and become a familiar name in Northbrook. The agency is built on strong relationships and specializes in working with individuals and small to medium size privately owned businesses.

Dasco gives back to the community with an annual Day of Giving by donating time at Feed Our Starving Children and by taking part in the annual Battle of the Books contest with Bernie’s Book Bank. Congratulations to everyone at Dasco Insurance Agency!

Unland Celebrates 80 Years in Insurance

Unland is celebrating their 80th anniversary this year. J. Logan Unland opened an agency in Pekin, IL and his son, Jim, joined him after serving in the US Army. The agency prospered by providing a “quality first” solution for commercial and business insurance.

As second generation to the insurance industry, Ken Samson, President of Dasco Insurance Agency, joined Dasco in 1992 and now has over 29 years of experience in insurance. Ken has been an active member of the IIA of Illinois and has served as Co-Chair of the Young Agents Committee, Vice President, President and Chairman of the Board. He is the recipient of the Young Agent of the Year Award and Charles M. Cartwright Award in recognition of his role as a longtime industry and association leader.

Through the decades, Unland has brown because of their strong foundation of customer first values. Unland now serves several communities in central Illinois: Pekin, East Peoria, Macomb, Metamora, and Morton.

The agency staff of licensed agents services the commercial and personal lines customers. Dasco handles all types of business insurance from an office policy, to cyber, professional liability, D&O, general liability, and workers compensation with a strong background in condo associations and liquor liability. The personal lines side of

Pat Taphorn, CIC, CSRM, is now the President of the agency and currently serves on the IIA of IL Board of Directors. Congratluations to the team at Unland!

Commercial Personal Lines We offer insurance solutions for homeowners and for small, medium, and large businesses with competitive pricing, an easy submission process, and the opportunity for multi-product discounts. Visit www.guard.com to see what we can do for you. Businessowner’s Commercial Auto Commercial Package Commercial Property Commercial Umbrella General Liability

Homeowners Personal Umbrella Professional Liability/E&O Workers’ Compensation Pay-As-You-Go options with over 200 payroll partners!

Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ AmGUARD • EastGUARD • NorGUARD • WestGUARD

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Thank You for your many years of service. Board service is one of the toughest volunteer roles and these outgoing board members performed their responsibilities with dedication and tenacity. They have tirelessly given their time and resources to help make the association what it is today. The IIA of IL staff appreciates their contributions and wishes them nothing but the best in their future endeavors.

Andrew Allan

IIA of IL Region 8 Director Lakeview Insurance Agency, Ltd. Chicago, IL What has been the most rewarding, for you personally, about your service on the board? The most rewarding thing for me, personally, while serving on the board was seeing the impact the IIA can have on agencies and their members.

Ed Boltz

IIA of IL Region 9 Director Crum-Halsted Agency, Inc. Geneva, IL What has been the most rewarding, for you personally, about your service on the board? The most rewarding part of volunteering was meeting people that I would typically not have met except through work on behalf of association.

Bill Durkin

IIA of IL At-Large Board Member The Daniel & Henry Co. Chicago, IL What has been the most rewarding, for you personally, about your service on the board? It was truly an honor to serve. Everyone from fellow board and committee members to the employees and leadership of the association were great people with a common motivation - advocacy for our industry. One can never know enough about our industry and was a great experience meeting and listening to brokers from all different regions of the state to learn what’s important to them and how they operate their business. continued...

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Joe Heneghan

IIA of IL Region 2 Director Heneghan, White, Cutting, and Rice Insurance Agency Jerseyville, IL What has been the most rewarding, for you personally, about your service on the board? The most rewarding experience that I have gained from my service on the IIA of IL Board has been the friendships that I have gained and the knowledge that I have attained on the ongoing processes of the association.

Ryan Hite

IIA of IL Region 5 Director, Executive Committee, Past President, Technology Committee Chair RLI Peoria, IL What has been the most rewarding, for you personally, about your service on the board? It will always sound cliche until you’ve served on this Board: It’s a special place. You get back more than you give. To put it another way... what you invest is returned to you compounded. The opportunities to be on the ground floor to help advise and shape State/Federal legislation that directly impacts our own business as well as the rest of your industry, while overwhelming most of the time, is worthwhile, fulfilling, and humbling. But certainly the relationships built while serving are immeasurable. Interacting with agents from different sizes, cultures, expertise, and geographies is an experience you cannot re-create or purchase. And I will forever be grateful to have been a part of it.

Randy Jacobs

Farm Agents Council Representative Payne Insurance Agency, Inc. Lexington, IL What has been the most rewarding, for you personally, about your service on the board? The most rewarding aspects of my service on the FAC and IIA boards have been the incredible professionals I’ve had the pleasure of working with and getting to know. The friendships I have made during my service on these boards will last me for the rest of my lifetime. I’ve also enjoyed getting to know more about the IIA and all the organization does for its members. The IIA is truly a top-notch professional organization and we, as agents, are thankful for all the organization does for us.

Bill Wirth

IIA of IL Region 2 Director, Executive Committee, Past President Wirth Agency Waterloo, IL What has been the most rewarding, for you personally, about your service on the board? It’s simple. It’s the people I’ve had the pleasure of meeting, the professional connections I’ve made and the friendships that I have developed. We have an amazing group of talented and dedicated individuals who have served and continue to serve our association. I’m fortunate to have been part of the team.

Interested in Getting Involved?

This is your association and as an insurance specialist, your insights and expertise can help shape the future of our association and industry. Go to www.iiaofil.org/About-Us/Get-Involved for more information. 36

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iia of il news | INSIGHT

Education Classes september

1 2 7 8 9 9 14 15 16 21 21 22 23 27 28

E&O Roadmap to Personal Auto Webinar CISR-Commercial Casualty 1 Virtual Pre-Licensing Course - Property & Casualty Virtual E&O Roadmap To Cyber & Privacy Insurance Webinar Agents E&O Webinar E&O – Meeting the Challenge of Change Webinar The Evolution of Ethics in Insurance Webinar CIC-Insuring Company Operations Hybrid: Virtual or in Springfield E&O: Identity Theft, Red Flags, and Money Laundering Webinar Pre-Licensing Course - Life & Health Virtual CISR-Insuring Personal Residential Property Virtual E&O - Roadmap to Policy Analysis Webinar CISR-Agency Operations Virtual E&O-Roadmap to Homeowners Endorsements Webinar Agents E&O Webinar

New Members

october

4 5 7 12 13 18 20 20 21 26 26 27 28

E&O-Roadmap to Homeowners Endorsements Webinar CONVO Springfield

erson! In-P

Flood Insurance and the NFIP Webinar Agents E&O Webinar E&O Roadmap To Cyber & Privacy Insurance Webinar Pre-Licensing-P&C Virtual Pre-Licensing-L&H Virtual CISR-Commercial Casualty 1 Springfield

erson! In-P

E&O: Identity Theft, Red Flags, and Money Laundering Webinar CISR-Insuring Commercial Property Virtual Agents E&O Webinar E&O - Roadmap to Policy Analysis Webinar E&O – Meeting the Challenge of Change Webinar

member agencies De La Mora Insurance Agency, Inc. Addison, IL ESCO Insurance Agency, Inc. Wilmington, IL F.P. Zimardo Agency Downers Grove, IL James E. Supancic Insurance Rochelle, IL

associate copper member Berkley Management Protection Chicago, IL For information regarding IIA of IL membership or company sponsorship, contact Tom Ross, Director of Membership Services, a (217) 321-3003 or tross@iiaofil.org.

Skylight Insurance Services Skokie, IL september 2021

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INSIGHT | classifieds for the insurance professional by the insurance professional

INSURANCE AGENT POSITION AVAILABLE

OPPORTUNITIES/SPACE AVAILABLE/RETAIN OWNERSHIP

19. Lansing, Illinois agency is seeking an Insurance Agent to join our team! You will be responsible for expanding the company’s book of business by selling various types of insurance policies to new and existing clients.

13. We are a 100 year old Northbrook agency looking to discuss any mutually beneficial opportunity. Our producers, mergers, clusters and agency purchases receive 50% commissions on new and renewal business without any expenses. We can provide: office space, phones, agency management system, service renewals and changes. The companies we represent are: Badger Mutual, Employers Mutual, General Casualty, Guide One, Hartford, Kemper, Progressive, Rockford Mutual, Safeco, State Auto, Travelers and Met Life. Contact:

• Must have at least 3 years insurance experience and active Illinois AND Indiana Insurance license for P&C and Life & Health (resident and/or non-resident) • No sales quotas • Outlook Mail and Microsoft Office Products • Knowledge of AMS360 a plus, not required

Cheryl Abbott Schultz Insurance Agency (708) 474-1310

Nancy Solomon Martini, Miller & Schloss, Inc. (847) 291-1313 Ron@martini-miller.com

INDEPENDENT INSURANCE AGENCIES WANTED

AGENCY/AGENTS/PRODUCERS WANTED

17. We are an Independent family-owned agency located in the Chicago area. We are looking to expand through growth and acquisition. If you have a small to medium sized agency and are looking to sell, call or send us a message. We are strictly looking for Personal Lines and Small Commercial accounts with preferred companies.

02. Forest Park/Oak Park agency for over 60 years, will meet your needs by providing space, markets, marketing & sales support, automation, merging with or purchasing your agency. Perpetuation/ Succession Plans, BuySell Agreements also available. We have experienced, educated and dedicated staff for you and your clients. Have access to our numerous companies, office services and many other resources. Retain ownership in your book with contingency. Please look closely at us- we are an agency you want to do business with! We’ve done it before, we know how- we make it easy! Visit our website at forestagency.com/agents.html, or call for a confidential discussion and a list of Agency benefits.

GALO Insurance Agency, Inc (847) 832-0888 steve@galoagency.com

AGENCY WANTED

20. Since 2004, Central Illinois Agents Group LLC has been providing independent agents with a variety of markets with contingency opportunities. Agents have availability to several markets that they may not be able to sustain or maintain on their own. We have markets for personal, commercial, agricultural and crop insurance lines. Let us help you get to the next level.

Dan Browne will provide an agency evaluation/appraisal at little cost to you. Please call:

Dan Browne or Cathy Hall Forest Insurance (708) 383-9000 www.forestinsured.com/mergers-acquisitions

Visit www.ciagonline.com for contact information.

We Make Hiring Easier

+ CareerPlug’s hiring software helps agents attract more qualified candidates, identify the right candidates with confidence, and improve hiring results. CareerPlug will provide IIA of IL members access to a free account that can be used to post jobs, manage applicants, and improve the organizations’ employment brand. Association members can also access a “Pro” version of CareerPlug for a special rate to take hiring to the next level.

Learn more about CareerPlug and check out the brand new IIA of IL job board at

www.iiaofil.org

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Partnerships are our priority. You focus on others, so let us focus on you.

We put the needs of our agency producers first. What does that look like? It looks like a family history of valuing and trusting business relationships, and a goal of serving you. Our focus is on developing lasting partnerships so we can tailor our solutions to your agency’s needs and help you expand your book of business. Our collaborative teams work to get the best market in the shortest time. Our core pillars of honesty, integrity and trust mean we stand by our word and are committed to helping you find the right solution.

Managing General Agents | Wholesale Insurance Brokers

Let us help you find the right solutions.

800.878.9891 ArlingtonRoe.com

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It Pays To Get A Quote From Applied.® Learn more at auw.com/MoreToLove or call sales (877) 234-4450 ©2021 Applied Underwriters, Inc. Rated A (Excellent) by AM Best. Insurance plans protected U.S. Patent No. 7,908,157.