Home :
About Us :
2004 Insurance Broker Report Outlines Spitzer
Settlements and Results of Leading Firms
Results Continue to Deteriorate
Harrisburg, PA --
April 19, 2005 -- (BusinessWire) -- WFG Capital Advisors
LP, a leading investment banking firm to the insurance
industry, announced today that its 2004 annual research
among the industry’s leading brokers indicates that many
firms continue to report an escalating decline in organic
revenue.
According to Steven
Wevodau, Managing Principal of WFG, “2004 results among the
leading distributors contained in WFG’s Broker Insights
report supports that industry leaders continue to show
declines in organic revenue growth. In essence, the organic
revenue growth composite is decreasing at an increasing
rate.”
Wevodau added, “The eight
leading firms reported a composite 5% organic revenue
decline for the quarter ending December 2004. In other
words, if you remove the benefit of acquisitions and foreign
currency exchange fluctuations, organic revenue growth among
the industry’s leading firms continues to shrink their
revenue base. For comparison purposes, this same segment
posted an 8.4% increase in revenues for the same period in
2003. Product rate stabilization continues to seriously
impact the industry leaders. The overall direction of the
market would strongly suggest that these firms are
contending with increased competition, client scrutiny and
market softening. When you combine all these factors, it
only makes the outlook cloudier.”
According to Rob
Lieblein, President of
WFG, “The recent settlements with various attorney generals
would indicate that the market segment is aggressively
seeking resolution of all regulatory impediments. As many
firms resolve impending investigations and opt to forego
contingent awards, the industry faces further challenges to
replace lost revenues and to continue to demonstrate
growth. 2005 will present numerous challenges for the
industry leaders and our goal is to provide qualitative and
quantitative insights among the peer group leaders.
Clearly, the Spitzer settlements with Marsh and
Aon serve as critical
catalysts for many industry leaders to look upon.
WFG’s report offers
comprehensive insights into this impact to the industry
segment as well as offering an outlook for many other
firms.”
A comprehensive report of
the industry research is included in the March 2005 edition
of
Broker Insights.
The report can be obtained at the WFG web site,
www.wfgca.com, by
selecting the “Publications” link, or by contacting WFG at
(717) 780-7800.
About WFG Capital
Advisors:
WFG Capital Advisors, based in Harrisburg, Pennsylvania, is
a leading investment banking firm to the insurance industry.
Media Contacts:
Steven S. Wevodau,
Managing Principal
Tel: 717.780.7802 /
swevodau@wfgca.com
Robert J. Lieblein,
President
Tel: 717.780.7801 /
rlieblein@wfgca.com
www.wfgca.com
