WFG Capital Advisors Announces Industry Report Reveals that Brokerage Market is Facing Challenges

WFG Capital Advisors LP, a leading investment banking firm to the insurance industry, announced today that its 2003 year end research among the industrys leading brokers indicates that growth is slowing at an alarming rate.

(PRWEB) April 2, 2004 -- According to Steven Wevodau, Managing Principal of WFG, An assessment of the leading distributors contained in WFGs Broker Insights report as of December 2003 strongly suggests that industry leaders are seeing a significant decline in organic revenue."

Wevodau added, The leading firms only sustained slightly over 8% revenue growth from organic means for the quarter ending December 2003. In other words, if you remove the benefit of acquisitions and foreign currency exchange fluctuations, organic revenue growth among the industrys 8 leading firms posted very modest results during 2003. A more troubling matter is that the quarterly sequence of organic growth throughout 2003 trended downward, each quarter. The first quarter indicated composite organic revenue growth of 13.9% and each succeeding quarter declined from there."

This is clearly a sign that product rate stabilization has manifested itself among the industry leaders. This presents some interesting perspectives on the overall direction of the market for 2004 and whether the leading firms will more aggressively seek acquisitions to supplement growth. Alternatively, we believe that there could be downward earnings guidance issued if these trends continue," Wevodau stated.

According to Rob Lieblein, Managing Principal of WFG, We believe that there are five critical dynamics that will shape the market during 2004. Items include outright market softening, the capital markets, successful sales strategies, the impact of banks, and merger and acquisitions. " Lieblein added, The market is at a very critical turning point and it is beneficial for all industry professionals to carefully monitor the developments over the next two quarters."

Our analysis includes the international brokerage market and contains some interesting perspectives and insights on the leading performers abroad. International brokers have significant impact on the global risk management market and are often overlooked", Lieblein added.

A complete report of the industry research is included in the March 2004 edition of Broker Insights, which includes a full 2003 analysis of the worlds leading brokers, and is scheduled for release to the general market on April 15. The report can be obtained at the WFG web site, www.wfgca.com, by selecting the Publications" tab, or by calling WFG at 717.780.7800.

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

Contact:
Steven S. Wevodau, Managing Principal
Tel: 717.780.7802 / swevodau@wfgca.com

Robert J. Lieblein, Managing Principal
Tel: 717.780.7801 / rlieblein@wfgca.com
www.wfgca.com