14th ANNUAL ROUGH NOTES
MARKETING AGENCY
OF THE YEAR CANDIDATES

Winner will be chosen by previous years' cover agencies

This month, one of the agencies featured in a Rough Notes cover story during 2002 will be chosen Marketing Agency of the Year. The agency principals of the winning firm will receive the award at a dinner held in their honor in February.

The winner will be selected by votes of the previous years' Rough Notes cover agents (from the years 1989-2001). Ballots have been mailed to the owners of these 141 firms.

The nominees for this year's award are described on the following pages. The winner will be announced in next month's issue, and a full story on the winner will appear in our April issue.

FEBRUARY

Oswald Trippe and Company
Fort Myers, Florida
John Pollock on the cover

How do you consistently achieve growth of 15% year after year? At Oswald Trippe & Company, it's a question of striking a balance among four key relationships: community, clients, carriers, and colleagues. Launched in 1981 from the home of Gary and Gay Trippe, the agency now has six locations in south Florida, staffed by 100 employee-owners (the agency is 30% owned by an ESOP) and generates more than $12 million in annual revenue.

Community involvement--Chambers of Commerce, Rotary, United Way, American Cancer Society--is a way of life at Trippe, so much so that it's included in the Personal/Business Plan each producer completes every October. By setting personal as well as business goals for the coming year, producers have the opportunity to focus on achieving success in all areas of their lives. The business plan not only specifies sales objectives but also outlines how the producer will relate with centers of influence that will support achievement of his or her goals. To ensure consistency in its relationships, Oswald Trippe & Company also develops business plans with carriers as well as commercial clients. The agency rewards top performance through a quarterly peer recognition program and an annual community service award.

"One of the core reasons for our success is that under Gary Trippe's leadership, agency executives have become incredible planners. Every producer does a Personal/Business Plan that spells out his or her goals for the upcoming year." --John Pollock, President

John Pollock, CIC, (right) took over the presidency of the agency in January 2002 from Gary V. Trippe, CIC, who continues as chief executive officer.

MARCH

The Cambridge Group
Livonia, Michigan
Agency principals on the cover

Why would a successful lawyer establish an insurance agency? For founder Kenneth Hale, who formed Cambridge Underwriters, Ltd., in 1974, the answer was simple: "It's a more positive business. I didn't really like practicing law profession, but I love the agency business." Far from abandoning the law, however, Hale also formed a law firm, Hale, Stein & Murphy, PC, to provide risk management services that combine legal and insurance expertise. Today The Cambridge Group, located in Livonia, Michigan, operates four Michigan offices with 120 employees and posts premium volume of about $120 million. The group consists of eight profit centers that provide property/casualty coverages, life insurance, employee benefits, pension and profit-sharing plans, and association management and insurance. One of the profit centers, Cambridge Underwriting Alliance, Ltd., is an SIAA Master Agency with 34 member agencies on the property/casualty side. Having attorneys as account executives gives Cambridge a big competitive edge in the commercial market. Their services include analyzing clients' documents, like contracts, lease agreements, and employee manuals. On the personal lines side, Cambridge specializes in arranging coverages for the executives of its commercial accounts--and also provides them legal review service.

"We never quote based on what another agent has done. We don't feel comfortable unless we've reviewed the employee documents, lease agreements, subcontractor agreements and any other pertinent documents. We also insist on visiting every location."--Kenneth R. Hale, Chairman

In 1974, Kenneth Hale founded an insurance agency and a law firm in a successful effort to provide clients with risk management services that combine legal and insurance expertise.

APRIL

Professional Insurors Consultants Agency, Inc.
Oklahoma City, Oklahoma
Cliff Miller (left) and Kelly Miller on the cover

These days it's hard to remember when independent agencies functioned as generalists, delivering--or trying to deliver--all things to all people. Today that notion is greeted with the kind of guffaws and groans elicited by leisure suits. But the generalist approach was commonly accepted in 1976 (when people actually <I>did<I> wear leisure suits), the year Professional Insurors Consultants Agency, Inc., was established in Oklahoma City. Right from the start, the agency was a niche marketer; in fact, it wrote only apartment buildings for the first two years and even declined other business. Based on its success in that niche, Professional Insurors added new producers and expanded into other niches. Today the agency writes more than 100,000 apartment units, 350 to 400 hotels and motels, and 50 churches; and it's Oklahoma's largest writer of mobile home dealers and landscape nurseries. Revenue is close to $3 million. A key factor in the agency's success is its focus on incentives for producers and support staffers alike: they function as teams and can win both team and individual recognition. The opportunity to win trips, cash bonuses, jewelry, and gift certificates keeps everyone motivated, and an annual awards dinner honors winners and recognizes employees who have received industry designations.

"We don't accept average and our people don't either. We want the 'average' to work for our competition."--Cliff Miller, Chief Executive Officer

Professional Insurors grew 24% in 2001. The agency's short-range goal is to reach $5 million in revenue by 2005. Cliff Miller, CEO, says sales incentives help them meet their goals.

MAY

Peel & Holland Financial Group
Benton, Kentucky
(From left) Roy Riley, Gregory Carlton and Keith Riley on the cover

Peel & Holland Financial Group's focus on sales and perpetuation has been the key to success for this Benton, Kentucky-based agency. The 78-year-old agency has grown to $3.6 million in revenue, in a marketing area of only 175,000. Current President/CEO R.C. Riley began working at the agency in 1965, after his college graduation. Over the years, Riley has continued to hire young talent, resulting in a strong strategic management team. Under Riley's leadership, Peel & Holland has branched out into the middle market and large commercial lines. During his tenure financial services have also been added, including employee benefits and investments. Around 1994, the agency took a "great leap forward" by moving from a service-oriented organization to a sales-oriented organization. While this sounds counterintuitive, according to Riley, the result has been better service to clients and companies. Part of the transition included making CSRs members of high-performance teams, which consist of an account manager who deals with clients, an account administrator who handles processing, and an account executive (producer). Various types of automation have made 24/7 service possible.

"We wanted to position the agency to effectively compete in the new arena of integrated financial services, and that decision has proven to be the right one."-- Greg Carlton, President of financial services

Peel & Holland's executive team: (standing from the left) Gregory Carlton, CLU, CFS, ChFC; Keith B. Riley, AAI; Roy Riley, CPCU, AAI; (sitting) L. B. "Brad" Colson, AAI; and R. C. Riley, CPCU.

JUNE

Tegner-Miller Insurance Brokers
Santa Monica, California
(From left) Dave Nelson, Ken Miller and Bill Aspinwall on the cover

When Bill Aspinwall joined the Chas. A. Tegner Company in 1980 as a producer, the 80-year-old personal lines agency was "sleepy and old-fashioned," with annual revenues of about $220,000. Twenty-two years later, the Santa Monica, California, agency now posts annual revenues of $4 million; $3 million of that growth has been in the last 12 years. In addition to Aspinwall, agency principals are Dave Nelson, Aspinwall's college roommate who joined the agency in 1982; and Ken Miller, whose P-C agency merger in 1996 created what is now known as Tegner-Miller Insurance Brokers. The agency's success is due in part to the principals' willingness to tackle industry challenges. For instance, after the passage of Prop 103 in 1988, the principals stayed in the market when many companies and agencies were exiting--and they prospered. In 1994, the Northridge earthquake severely damaged their agency. Positive consequences included an increase in earthquake coverage sales. Today's medical malpractice crisis has also been a boon to the agency. The agency has implemented cutting-edge technology, including imaging, paperless faxing, "thin client" server access, carrier downloads, and a Web site that generates many profitable leads.

"Combining our individual strengths has created an environment that has proven to be far more efficient and productive than any of us could have imagined."--Dave Nelson, Principal

Members of the Tegner-Miller Insurance Brokers management team are (seated from left) Chris Czuzak, CPCU, principal; and Dave Nelson, principal. Standing (from left) are Suzanne A. Matheson, ACSR, managing director; and Ken Miller, principal.

JULY

T.J. Adams Group, LLC
Lombard, Illinois
Kent A. Nelson picture on the cover

The T.J. Adams Group, LLC, in Lombard, Illinois, began 35 years ago as a specialist for the construction industry. In the 1980s, the agency expanded its scope, but remained a traditional property/casualty broker. In 1998, the agency's board of directors wanted to bring the agency to "the next level," so they hired Kent A. Nelson as president/CEO. Nelson's 20 years of experience with top brokers, including serving as area president of Arthur J. Gallagher, launched T.J. Adams into a new era. Today, the agency is a full-service firm with annual revenues of $17 million, 130 employees and six locations in the Chicago area. Nelson's strategic plan included: becoming a member of Assurex, which provides clients with risk management services around the world; improving internal and external communications; and expansion through value-added services. These value-added services included forming two subsidiary groups--Adams Safety Management Services, which provides loss control and safety programs for clients; and Medical Providers Risk Services, which sells medical malpractice to doctor groups. The agency has a strategic affiliation with an HR firm to provide custom services to clients, and offers wealth management and other accounting services through partnership with a CPA. Another fast-growing area is the benefits department.

"We have all the pieces in place to support a stronger sales effort. We have a talented sales and support staff known for their expertise, experience, integrity and relationships in the industry."--Kent A. Nelson, President/CEO.

T.J. Adams senior staff members.

AUGUST

ISU Insurance Services of Colorado
Denver, Colorado
Bill Adams, David Adams, Pam Adams & Mike Adams on the cover

Bill Adams purchased this 120-year-old downtown Denver agency in 1977, when it had five employees and $191,000 in annual revenues. Today the agency has grown to 24 employees and close to $3 million in revenues. Its growth over the last four years has put it on track to reach its goal of $8 million in revenues by 2008. The agency specializes in writing hard-to-place general business. Its programs have received endorsements from associations for restaurants and financial institutions. It also has concentrated on writing dry cleaners, private schools, high tech industries and law firms. Life and employee benefits business has been emphasized since the mid-'80s, and today accounts for around 30% of revenues. Referrals of commercial accounts from direct writers have proven to be a good source of new business. What makes it work is that the agency assures the direct writing agent that ISU Insurance Services of Colorado will not go after the direct writer's personal lines accounts. Two sons and a daughter have joined the family firm, although Cathy Percy, a non-family member, was named president and COO several years ago, "sending a message," says Bill, "that you didn't have to be part of the Adams family to succeed." In 1996 the agency established a perpetuation plan, and it has proven reassuring to newly hired producers that the agency is not for sale.

"A lot of our business is referrals. We do a lot of networking and it's really paid off."--Pam Adams ,Executive Vice President

Volunteers of America, Colorado Branch, has been a client of the agency since 1946. Pictured (from left) are: ISU Insurance Services of Colorado CEO Bill Adams; Nolan Knox, director of nutrition services for VOA Colorado; Jim White, manager of community affairs, VOA Colorado; and Pam Adams, ISU Insurance Services of Colorado executive vice president.

SEPTEMBER

The Mahoney Group
Casa Grande, Arizona
Douglas Fyfe on the cover

This independent agency has approximately $25 million in annual revenues and operates nine offices throughout Arizona. Real estate contributes about $1 million of that revenue. In 2001, the firm was sold to its seven leading producers and the controller. In the process the agency established a perpetuation plan that provides stability to pursue its long-term goal of becoming a major regional broker. Since the new owners took over, the agency hasn't missed a beat. It grew by 29% last year, and at mid-year 2002, the firm was averaging $416,000 in new commission income per month. Each of the agency's widely dispersed offices determines its own marketing plan. A high-volume data transmission line ties the offices together, and the Casa Grande headquarters handles carrier appointments and accounting. Although The Mahoney Group has purchased some small agencies, "pretty much all of our growth has been organic," says Doug Fyfe, president and CEO. The agency has invested heavily in new producers, hiring six to eight per year--some of them from an intern program the agency maintains with universities in the state. It has national programs for property managers, apartment managers, shopping centers, self-storage facilities; homeowners associations and planned unit developments and Sovereign Indian Nations.

"We will continue to grow the agency in Arizona and neighboring states. We've been able to attract good producers and intend to continue to add local offices as we expand."--Douglas Fyfe, president and CEO

The Mahoney Group employs approximately 145 people. Five of the seven owners are (standing, from left): Leon M. Byrd, Jr., producer; J.R. McEvoy, producer; and Matthew R. Bagnall, chief financial officer. Seated, from left are Steven R. Goble, producer; and Douglas Fyfe.

OCTOBER

Fitzgerald, Clayton, James & Kasten, Inc. (FCJ&K)
Milwaukee, Wisconsin
Richard Twietmeyer (left) and Todd James on the cover

This agency of $4 million in revenues and 32 employees boasts a history going back more than 150 years. But the last five years have seen a lot of internal changes. These changes resulted in some attrition and some new hires. It also included psychological testing for all employees. "We wanted people to spend 80% of their time doing the things they had a passion to do," says Todd James, chairman and CEO. By matching people's jobs more closely with their individual strengths, the agency saw an increase in cooperation among the agency's five business departments. "When I'm working with a client, it's not uncommon for me to bring in two or three employees from other departments," says Carla Borda, senior vice president of FCJ&K's professional department. The agency also changed its sales approach, taking service work entirely out of the hands of producers. Producers began making extensive use of centers of influence for referrals. As a result, the agency's closing ratio has gone from 25% to 78.5%. For its professional health care clients (almost $11 million in premiums for the agency), FCJ&K established a network on the Internet, which it calls Midwest Health Care Alliance. It includes a bulletin board dealing with health care issues, case law developments and access to strategic partners recommended by the agency.

"Our value-added philosophy is reflected in our day-to-day operations, and we make a point of communicating clearly to employees about our direction."--Todd James, Chairman and CEO

Todd James (seated), chairman and CEO of Fitzgerald, Clayton, James & Kasten, is the fifth generation of the James family to work in the insurance industry. His father, Charles V. James (standing), purchased FCJ&K in 1987, and now serves as chairman emeritus.

NOVEMBER

InterWest Insurance Services, Inc.
Sacramento, California
Tom Williams on the cover

In 1992, three mini-giant agencies in Northern California merged to form InterWest Insurance Services, creating a firm that produced about $10 million in revenues. Today annual revenues exceed $35 million. It operates nine offices that employ 235 people in "second tier" cities of the northern California valley. The three original agencies had a generalist business focus, which continues with InterWest, but the merged operation has added what Tom Williams, chairman and CEO, calls an "eco-system" of client services to enhance growth. These services--some outsourced and some handled internally--include program development, management consulting, PEO services, risk management and safety consulting, claims management and alternative markets. Bill O'Keefe, executive vice president, credits the agency's broad ownership structure (30 stockholders as well as an ESOP which controls 30% of the stock) for "our ability to attract and retain top producers and support staff ... We have made a conscious, philosophical decision to remain independent." The agency has a nine-member board, as well as an Executive Leadership team that includes people from each of its three regions. The agency's stock value has grown by more than 30% annually for the past several years. Revenues have grown by an average of 25% each year, and profit growth has exceeded revenue growth in each of those years.

"We're not owned by a bank or some other outside organization, and they (the producers and support staff) know we won't be selling to someone outside ... We made a conscious decision to remain independent. Everything we have done is in line with that goal."--Bill O'Keefe, Executive Vice President

Tom Williams (left) is chairman and chief executive officer of InterWest Insurance Services and Bill O'Keefe is executive vice president.

DECEMBER

Gilbert's Insurance Agency
Sharon, Pennsylvania
Lew Kachulis, President, on the cover

This agency has undergone dramatic changes in the past 10 years--a period in which it has grown by more than 300%. During that time there has been a transition to younger ownership as Lew Kachulis, president, has been buying out the interest of his father. Also, producers whose annual renewable revenues exceed $250,000 are presented with $100,000 of agency stock, and two producers in their 30s just qualified for this reward. The agency also shares 20% of its profit with employees, and most employees have additional incentives as well. For example, CSRs receive a bonus based on the revenues they are servicing. As the market has hardened, the clients of Gilbert's Insurance Agency have benefited from a workers compensation safety and loss control program which the agency established about three years ago. To run the program, the agency hired two insurance company executives with experience in workers compensation claims and loss control. In the first year of the program, clients have achieved a 51% reduction in workers comp claims frequency by 51% and a 49% reduction in claims severity. It is a fee-based program which the agency, as a licensed TPA, now offers not only to its own clients but also to other agencies, insurers and self-insured entities. Premium volume of the agency is approximately $20 million.

"The supervisor accounta-bility program is the critical component to reducing an organization's (workers compensation) accident frequency. I spent four years in the Air Force and never saw a jet go up dirty when the pilot's name was on the side."--Jim Culligan, Account Executive

Gilbert's Insurance Agency producers (left to right) are: Jim Culligan, James Schneider and Robin Miller.

Please help us name the Marketing Agency of the Year for 2002. Only agencies that have been a Rough Notes Marketing Agency of the Month are eligible to vote. Your agency is entitled to one vote.

From the 11 agencies described in this mailing, please select one as your choice for Marketing Agency of the Year. You can send your vote to us by e-mail, fax (toll-free) or mail. We must receive the vote by January 10, 2003.

1) To vote by e-mail: Send the name of your choice to: tmccoy@roughnotes.com

2) To vote by toll-free fax: Send the ballot below to Tom McCoy: (800) 321-1909

3) To vote by mail: Send ballot to:

Tom McCoy
Editor-in-Chief
Rough Notes Magazine
11690 Technology Dr.
Carmel, IN 46032

Select one of the 2002 Marketing Agencies of the Month from the list on preceding pages.

MY CHOICE FOR THE 2002 MARKETING AGENCY OF THE YEAR IS:

Your name:

Agency name:

Your e-mail address:

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