Biggest Brokers May Be Too Acquisition-Dependent, New Industry Publication Reveals

Broker Insights from WFG Provides Quarterly Review of Brokerage Sectors Financial Performance, Trends

Harrisburg, PA (PRWEB) January 16, 2004 --Third-quarter financial reports from the insurance industrys largest public brokers reveals a trend toward growth through acquisition versus organic growth. Thats a key-finding revealed in the premiere issue of Broker Insights, a new quarterly publication from WFG Capital Advisors, a leading investment banking firm for the insurance industry.

Some of the largest brokers are not sustaining the appropriate level of organic growth that the industry expects," explains Steven Wevodau, WFG principal and an author of the analysis. Our review of the largest brokers third-quarter results confirms this trend toward growth through acquisition rather than the brokers internal organic growth. For a couple of firms, acquisition growth is surprisingly high and rising which raises the question whether their growth rates are sustainable over the long-term."

The trend of shrinking organic versus acquisition growth is further evident when comparing the third quarter with composite year-to-date results, says the WFG report. The organic growth percentage slipped from 12.4 percent to 10.3 percent in that comparison of the brokers studied.

WFG launched Broker Insights as a response to the need for current, in-depth information on the major distribution market. Broker Insights goes into much more detail than most industry reports and provides the type of trends and analysis that people who follow the industry segment have been seeking in one, comprehensive report.

Along with an examination of key industry developments that focuses on organic growth rates, the premiere issue of Broker Insights includes:
•   An analysis of growth rates of insurance operations by leading banks versus traditional brokers
•   An evaluation of broker financial results, factoring in economic activity and product and rate trends
•   A summary of stock performance, market capitalization, revenue and earnings of the leading brokers
•   A review of brokerage mergers and acquisition activity

Another unique feature of Broker Insights is an in-depth company synopsis of major brokers. In each issue, recent developments, performance metrics and detailed company overviews will provide readers with cutting-edge snapshots of leading industry firms.

Broker Insights will provide industry professionals with valuable granular data that previously was not available in one publication," says Rob Lieblein, WFG President and Managing Principal.

Available through an annual subscription, Broker Insights is distributed in electronic or print editions. To subscribe or review the premiere issue, contact WFG at (717) 780-7800 or click on the Publications link at www.wfgca.com.

About WFG Capital Advisors
WFG Capital Advisors LP, based in Harrisburg, Pennsylvania, is a leading investment banking and corporate financial advisory firm for the insurance and financial services industries.

Media Contacts
Steven S. Wevodau, Principal
(717) 780-7802, swevodau@wfgca.com
www.wfgca.com
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