The San Fernando Valley region’s largest insurance brokerage companies overall experienced growth in premium totals last year, with some companies changing the way they do business. The largest local broker, measured by premium totals, was Arthur J. Gallagher & Co., which has four offices in the greater San Fernando Valley. The company brought in $720.2 million in premiums locally in 2010. That was a slight increase from the previous year with the company adding new “highly specialized” team members in 2010, said Scott Firestone, the company’s area president. The second largest broker was Wells Fargo Insurance Services USA Inc.’s Sherman Oaks office. The local office’s premiums increased to $375 million in 2010 from $365 million the previous year. The increases occurred because of new business added and a new team structure, said William Holden, the company’s managing director. USI of Southern California Insurance in Woodland Hills made third place with $346 million in premiums in 2010, which is a drop from $378 million in 2009. The loss of two lines and softer markets caused the decline, said Thom Lewis, the company’s regional CEO. While most of the Valley area’s largest brokers saw increases in premium totals, the most significant increase was for Woodland Hills-based Poms & Associates Insurance Brokers Inc., which had a year-over-year increase of nearly $56 million. The company was still benefiting from a recently added division, said David Poms, the company’s president. L/B/W Insurance & Financial Services Inc. has also expanded its company over the past year through an acquisition and the creation of a new division. Growth Wells Fargo Insurance Services had about $3.2 million in new income and about $25 million to $32 million in new revenue in 2010, Holden said. “Where there was rate deterioration, on our renewal book, we offset it with new business increases,” he said. Holden said the company’s success is tied to the team’s ability to build relationships with clients. It also likely has to do with a new organization model, he said. “We actually reorganized our producers into production teams in order to get more hands-on kind of coaching and work, which will benefit our clients,” Holden said. Wells Fargo Insurance Services had the greatest improvement in the hospitality, property management and manufacturing sectors, he added. Poms & Associates’ $56 million jump in premiums was due to solid activity for the company’s personal lines and employee benefits divisions, said Poms, the company’s president. He estimated that both divisions increased revenues by more than 30 percent in 2010. Meanwhile, USI’s $32 million decrease year-over-year in its premiums total was partially caused by the company dropping two of its divisions in late 2009, Lewis said. “We got out of unprofitable lines of business and focused on our core businesses, which are commercial lines insurance and employee benefits,” Lewis said, adding that USI dropped its entertainment line and started outsourcing its small employee benefits. Lewis said that while new business continues to be strong, the company’s existing accounts were renewed in softer markets, which affected the premiums total. Even with a lower premiums total, 2010 was the company’s best financial year in five years, Lewis said. Company expansion In 2010, Valencia-based L/B/W Insurance & Financial Services acquired another company and added a new division. In January of this year, L/B/W acquired Fortman Insurance Agents and Brokers, a smaller company from Valencia. The acquisition doubled L/B/W’s personal lines division, said Mitzi Like, the company’s CEO. In late 2010, L/B/W also added its Tech Secure division. to have a technology division that was a little more interactive than just selling insurance The region’s brokerage companies specialize in a variety of sectors, with Glendale-based Pacific Federal Insurance Corporation standing out as the only company on the list to solely write large group employee benefits. Download the 2012 SFV’s LARGEST INSURANCE BROKERS list (pdf)
Largest Insurance Brokers Register Boost in Premiums
