Orange County’s insurance brokerages grew for a sixth straight year to combine for about a 7% increase in local revenue to $623.6 million in 2015.
This week’s Business Journal list ranks the 25 largest insurance brokerage firms with headquarters or significant operations in Orange County.
Their growth follows a 13% increase in 2014, a 9% jump in 2013, 7% in 2012, 13% in 2011, and 3% in 2010.
This year’s growth is almost three times faster than the 2.5% annual growth to $142 billion experienced by the overall industry in the past five years, according to research firm IBISWorld in Santa Monica.
OC’s improving economy and lower unemployment rate likely are boosting brokers’ revenue. More companies need commercial coverage as they grow and benefits coverage as they hire employees, the research firm said.
Five of the firms reported a drop in revenue, 15 were up, the Business Journal estimated numbers for five, and two companies grew enough to premier on the list.
The firms with $25 million or more in revenue grew almost three times faster than their smaller competitors—22% versus 7.6%. The larger firms also accounted for 75% of total revenue on the list; they made up 66% of total revenue a year earlier.
Four of the top five firms this year accounted for $22.6 million, or about 54%, of the total dollar increase on the list.
The list also includes firms’ number of licensed brokers, support staff and companywide offices, though that information didn’t factor into the rankings.
The firms combined for 2,109 property and casualty producers, seven more than a year earlier, and 286 benefits producers, up about 3%. They had 1,482 support staffers, up about 2%.
• Alliant Insurance Services Inc. in Newport Beach, the perennial No. 1, had revenue of $111.5 million, up about 14%. The firm had 26 property and casualty producers, up by one, and eight benefits producers, also up one position. It had 188 support staff, up about 7%.
• Marsh Risk & Insurance Services/Mercer in Irvine is No. 2 with $57.5 million, up about 11%. The firm had 23 property and casualty producers, up 21%, and 26 benefits producers, down 13%. It held support staff steady at 126.
• USI Insurance Services LLC is No. 3 with about $43.8 million, down 6%. The Valhalla, N.Y.-based insurer had four property and casualty producers and 11 benefits producers in its Irvine office, down one specialist in both categories. It had 45 local support staffers, down 61%.
• BB&T Insurance Services of Orange County/Precept Group in Irvine is No. 4 with about $39 million, up about 2%. The company’s OC employment held steady with 21 property and casualty producers, 33 benefits producers and 265 support staff.
• Arthur J. Gallagher & Co. is No. 5 with $36.7 million, up about 7%. The Itasca, Ill.-based company had 13 benefits producers in Irvine, hired seven support staff to employ a total of 59, and held steady on property and casualty producers with 14 in its Irvine office.
Notables
• Barney & Barney, a Marsh & McLennan Insurance Agency LLC Co. rose two spots to No. 8. The White Plains, N.Y.-based firm said its Aliso Viejo office took in $31.2 million in revenue, up about 31% and the largest percentage increase on the list. The firm had 13 property and casualty producers, eight benefits producers and 83 staff up 17%.
“Significant organic growth in employee benefits and property and casualty” drove growth at the firm, Managing Director Travis Trask said in a written statement.
“Employee benefits grew 42% year-over year, while property & casualty experienced strong, double-digit revenue growth. During the same period, we had over 100% renewal revenue retention. All of this growth occurred through our existing producer team that continues to win larger and more complex accounts. To maintain our high-touch, client service model, we continued to add support staff in Orange County.”
• Wood Gutmann & Bogart Insurance Brokers in Tustin climbed one spot to No. 10. The firm’s revenue rose 23% to about $27.8 million. It had 42 property and casualty producers, up 5%, and three benefits producers. It increased support staff by about 34% to 99.
• OneDigital debuted at No. 22, with its Aliso Viejo office reporting about $7.2 million in revenue, down about 22%. The Atlanta-based company formerly was named Digital Benefit Advisors. It had no property and casualty producers; added three benefits producers for a total of seven locally, and increased its support staff by about 42% to 44.
• Northwestern Mutual in Irvine debuted at No. 25 with a little more than $5 million in revenue, down about 4%. The Milwaukee-based company said its OC office employed no property and casualty producers and had 52 benefits producers and 42 support staff, up 5%.
