agency acquisition program (buy)
Post on 07-Aug-2015
93 Views
Preview:
TRANSCRIPT
14
AGENCY ACQUISITIONS PROGRAMThe Agency Acquisitions program provides lucrative financial incentives to capitalized external candidates to facilitate the purchase of service and commission rights from existing Farmers agencies with less than 1,000 policies in force.
The Candidate�� Proven background in building and managing a business venture
�� The desire to build and grown an existing business
�� Decisions made with ROI and cash flow in mind
Self-Motivation and Independence�� Effective time-management skills and self-reliance to accomplish goals
�� The ability to identify and focus on priorities
Communication Skills �� The ability to inspire as well as listen and learn from others
�� Leadership and people management skills
Performance �� The motivation to work hard and take risks to achieve financial success
�� Willing and able to make investments into business opportunities for future gain
�� The willingness to accept responsibility for personal success and failures
15
The ProcessAssets
�� Minimum of $25,000 in seasoned investable assets in addition to the cost of acquisition
Licensing and Training�� Property and Casualty, Life and Health and Approved U4 required prior to agent appointment
�� Training Milestones and Assessments
Background Check�� Satisfactory results of background check
Business Plan�� Approval of 5-year business plan and cash flow projection
Branded Office Location�� Office location fully equipped and compliant with Farmers SMART Office standards within 120 days
Agency Staff�� Minimum of 1 licensed and appointed agency staff member
The Benefits Economic Interest
�� Contract Value according to the terms of the appointment agreement vested 20% per year for 5 years
Office Start-Up Program�� Up to $10,000 bonus for office startup expenses
Monthly New Business Premium Bonus�� Bonus % paid on monthly new business Agent Eligible Premium
�� Bonus % schedule a function of Bonus Eligibility Period
�� All agents start at Tier C bonus level for first quarter and then tiers are determined by prior quarter performance
�� Monthly bonuses paid on Life and Commercial premiums subject to caps
6
Why Become a Farmers Agency Owner?
Support As a Farmers agency owner, you will enjoy:
�� Support from a District Manager and/or business consultant invested in your success
�� Comprehensive training and business development support
�� Financial bonus opportunities
�� Lead generation & agency start-up cost support*
�� Loan options through Farmers Insurance Group Federal Credit Union
�� An option to participate in a deferred compensation plan
�� Benefits for you, your family and your staff
�� The ability to open multiple office locations
�� The ability to sell your service & commission rights
�� An opportunity to buy service & commission rights from another agent
*Applicable to certain programs only.
19
Product Portfolio
Outstanding product suite that allows you to compete and succeed
Property & Casualty Insurance
LifeInsurance
FinancialProducts1
�� Auto
�� Home/Renters
�� Umbrella
�� Small Business:�– Commercial P&C
�– Business Auto
�– Workers’ Comp
�� Boat
�� Motorcycle
�� Motor Home
�� Mobile Home
�� 529 Plans
�� 401(k)s
�� Variable Annuities
�� IRAs
�� SEPs
�� Variable Universal Life
�� Mutual Funds with nationally recognized fund families
�� Term Life
�� Universal Life
�� Whole Life
�� Critical Illness Riders
�� AD&D
�� Disability Income Riders
�� Group Life
�� Fixed Annuities
1 Securities offered through Farmers Financial Solutions, LLC – Member FINRA & SIPC Note: All products and features may not be available in all states and may vary by state
28
Business Development Support – Outplacement
Ability to refer business not eligible/acceptable to Farmers to Kraft Lake Insurance Agency, Inc.
Accessible through web portals, email, and toll free phone numbers.
ProfessionalLiability (E&O)
High ValueHomeowners
E&S Vacant Building/Land
…and more
Farm & Ranch
Contractor’s General Liability
24
In addition, agents have the ability to sell all or any part of their Service & Commission Rights to an approved buyer, provided the purchaser is approved by Farmers*.
Financial Support – Contract Provisions
A Farmers agency has significant value
When an agent contract ends, Contract Value payments may be made to the agent. Contract Value is calculated based on the two following factors:
�� The amount of service commissions paid to the agent on specified policies during the 12 months prior to the termination of the appointment
�� The number of specified policies assigned to the agent
Number of Specified Policies: Percent of Applicable Service Commissions:
%005 woleB
%52057– 05
%05005,1– 157
%57000,2– 105,1
%001000,2 revO
Visit www.BeAFarmersAgent.com
*Seed Program candidates do not have the ability to sell for 5 years.
21
Financial Support – Performance Bonuses
Acquisition Program
Financial support that rewards your performance – Acquisition with Bonus
�� Tiered bonus system based on cumulative, applicable policies in force or applicable new gross folio premium generated
�� Duration of financial support determined upon amount of policies purchased
�� Performance in the prior quarter determines the next quarter’s bonus tier (from Q2 onward; in Q1 all agents start as a tier C)
�� Performance based bonuses are paid out monthly
�� Monthly bonuses for commercial and life insurance are subject to capping
0
1,000
2,000
3,000
4,000Policies In Force (#)
Bonus tier
B
C
A
01,0002,0003,0004,0005,0006,000
Gross Folio Premium ($ tsd.)
Bonus tier
B
C
AOR
Note: Policies in force and gross folio premium requirements as well as bonus percentages shown areillustrative, subject to change and adjusted based on local market environment. Additionally, there are separaterequirements for P&C and Life.
Monthly Eligible Premium Bonus Percentage by Tier
Tier Y1-Q1 Y1-Q2 Y1-Q3 Y1-Q4 Y2-Q1 Y2-Q2 Y2-Q3 Y2-Q4 Y3-Q1 Y3-Q2 Y3-Q3 Y3-Q4
A 31.5% 32.0% 29.5% 27.0% 24.5% 22.0% 19.5% 17.0% 14.5% 12.0% 9.5% 7.0%
B 31.5% 30.5% 28.0% 25.5% 23.0% 20.5% 18.0% 15.5% 13.0% 10.5% 8.0% 5.5%
C 31.5% 29.0% 26.5% 24.0% 21.5% 19.0% 16.5% 14.0% 11.5% 9.0% 6.5% 4.0%
Monthly Premium Bonus Caps
Year 1 Year 2 Year 3
LIFE
Monthly $1,000 $750 $500
COMMERCIAL
Monthly $2,500 $2,000 $1,500
29
Business Development Support – Sales Tools
Outstanding sales insights and management support tools
Lead Management enables you to:�� Manage your leads and cross-selling opportunities
�� Launch automated sequential marketing programs (SMP)
�� Write new business with access to a lead database
Sales Management provides you with:�� Real-time analytics for managing lead source
effectiveness and setting and tracking goals
�� Visibility into your sales pipeline
Financial Management gives you:�� The ability to analyze staff and
compensation strategies
�� Evaluations of investment opportunities with what-if scenarios
SIMS Examples
Visit www.BeAFarmersAgent.com
27
Business Development Support – Start-up
Access to agency start-up support services
LoanSupport
PayrollSupport
O�ceSupport
LicensingSupport
Access to discounted
licensing courses:
P&C, Life, Series 6/63
Access to discounted
o�ce furniture,
technology, branding,
and art
Access to discounted
payroll set up and
processing services
Loan support from Farmers
Insurance Group
Federal Credit Union
26
Financial Support – Benefits
Access to Group Life and Comprehensive Medical plans for you, your family and your staff
Voluntary Hospital Plan
Dental
Vision Service Plan
Life/ AD&D, Supplemental AD&D
Critical Illness Insurance Plan
Long Term Disability
Enhanced Long Term Disability
Business Overhead Expense
Errors and Omissions
Fidelity Bond
Medical
Deferred Compensation Plan
Visit www.BeAFarmersAgent.com
30
Other Support & Options
After hour call center
Cross border licensing
Satelliteo�ces
Agency Acquisition
Option
Ability for existing customers to make policy changes and make payments over the phone after normal agency hours
Dual agent appointment to enable writing business in other states, subject to approval
Ability to set up additional office locations to increase market penetration, subject to approval
Ability to purchase service and commission rights from another Farmers agent, subject to approval
22
To Become a Farmers Agency Owner
�� Interviews
�� Background check
�� Available assets verification
�� Approved business plan & cash flow projection
�� Final candidate review
Agency Development
BaseTraining
Licensing
Recruiting
�� Property & Casualty insurance license
�� Life & Health insurance license
�� Comprehensive online & instructor-led training courses
�� Pass assessment tests
�� FFS approval of Form U4
�� Approved business plan
�� Office set up with applicable licensed staff requirements
Access to incentive-based financial bonuses�– Lead generation (Retail only)�– Office start-up bonuses in year one�– Monthly bonus up to three years (Retail and Acquisition)�– Annual financial bonuses for three years after appointment (Retail only)�– Additional bonuses available throughout your agency ownership
�� Securities licensed and FFS approved to sell to be obtained within twelve months after appointment
�� Ability to sell your service & commission rights
�� Opportunity to acquire additional service & commission rights
Visit www.BeAFarmersAgent.com
top related