Independent agencies are enjoying a period of high profitability boosted by healthy organic growth despite continued soft pricing in commercial lines.
Independent insurance agents/brokers posted median organic growth of 5.9 percent for the second quarter of 2015, slightly higher than 5.8 percent recorded in the first quarter of 2015 and second quarter of 2014, as measured by the Reagan Consulting Organic Growth and Profitability (OGP) quarterly survey.
“Industry organic growth has now been in a relatively tight band of five percent to seven percent for 14 consecutive quarters,” said Kevin Stipe, president of Reagan Consulting, an Atlanta-based management consulting and merger-and-acquisition advisory firm for the insurance distribution system. “Times are good for insurance brokers.”
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