Local tradition, global power

Rough Notes, May 2003 by Boone, Elisabeth

MARKETING AGENCY OF THE MONTH

St. Louis brokerage Daniel & Henry proudly serves its horte city while doing business around the world

If you drive east toward the city of St. Louis on U.S. Highway 40, you'll see much more than the typical exurban clutter of billboards, gas stations, and fast food joints. On your left spreads the lush expanse of Forest Park, designed a century ago to house the wonders of the 1904 World's Fair. On the right you'll see the soaring modern planes of the Science Center, which is connected to the park by a graceful footbridge that leads to the city planetarium. And your eye is sure to be caught by a gleaming structure of green glass and steel whose principal occupant's name is spelled out in simple aluminum letters: Daniel & Henry. Located on a site that once was home to the area's beloved amusement park, The Highlands, this elegantly simple building is headquarters for the area's largest privately owned insurance brokerage and 52nd largest in the country.

Since its etablishment in 1921 by St. Louis entreqreneurs Carl Daniel and Jesse Henry, Daniel & Henry has balanced a deep commitment to its home city with a measured expansion of its facilities to meet the needs of clients who operate both nationally and internationally. From the start, the agency has distinguished itself from competitors by adopting an operating structure under which individual brokers share common facilities to reduce overhead. Although such arrangements are more common today, they were far from the norm when Daniel & Henry opened its doors in the early years of the Roaring Twenties.

Today, 25 directors, each of whom heads an independent business unit, occupy Daniel & Henry's handsome new headquarters just a few miles west of downtown St. Louis. The firm employs a total of 220 persons, of whom about 60 are producers representing more than 50 highly rated insurers. In 2002, Daniel & Henry posted commercial and personal premium volume of $140 million and took in premiums of $50.6 million on employee benefit and individual financial services business. Personal lines accounts for 12% to 15% of the firm's total income; many personal lines clients are the CEOs and partners of the major firms Daniel & Henry insures.

Experience and commitment

Family tradition is a hallmark of Daniel & Henry. Bob Harrison, chief operating officer, joined the firm in 1985 to work with his father as a broker. He continues to manage a book of business and also serves on the executive committee. "In my role as COO, I'm responsible to the board and to the executive committee, helping oversee insurance operations, human resources, and financial activities," Harrison explains.

Celebrating a quarter century of service with Daniel & Henry is Executive Vice President John Drew, who began his career as a broker and continues to act in that capacity. His unit handles both commercial property/casualty and group coverages. "My main focus is to grow a book of business," he says. "That's basically what all of our producers do. Our job is to get a book and grow the book." Drew has served on the firm's executive committee for 12 years; his father, Charles S. Drew, Jr., is chairman of the board.

Heading up commercial marketing for Daniel & Henry is Colleen Signorelli, also a 25-year veteran of the firm, who managed the personal lines department for 17 years until being appointed vice president and commercial marketing manager in 2002. She directs a staff of 14 who handle marketing for Daniel & Henry's small and middle market commercial accounts.

Entrepreneurial spirit

As mentioned earlier, Daniel & Henry was established as a cluster agency when such a structure was far less common than it is today. "Each of our producing units controls its own book of business." Harrison says. "Our objective is to leverage the capabilities of those brokers and reduce overhead, to make our firm very entrepreneurial. We operate under common guidelines and rules, but we allow a lot of independence within the firm."

The heads of the agency's 25 production units are responsible for managing their own staffs: CSRs, account executives, other producers. The firm assists in hiring and training support personnel. The agency has four profit center departments: commercial marketing, group benefits, financial risk, and personal lines, as well as service centers for claims, accounting, human resources, information technology, loss control, quality control, and training. Production units share commissions with the house to cover administrative costs. "Each production unit is responsible for producing group and personal lines business, but their main focus is commercial lines and group sales and service," Harrison explains. The heads of Daniel & Henry's 25 production units comprise the firm's board of directors. The board elects nine of its members to serve three-year terms on the executive committee.

Competitive edge

Large, established, and well known, Daniel & Henry nonetheless strives to differentiate itself from competitors. The agency's mission is "to serve our clients by providing high-quality risk management programs and unparalleled service." Says Drew: "Most of our customers operate without a full-time risk manager on staff, and we fulfill that role for them. We use our expertise to develop insurance programs and risk transfer programs on our clients' behalf. In that respect, we differ from other firms that work with risk managers to place coverage based on what they recommend." Adds Signorelli, "From a management standpoint, I think we're much stronger than our competitors. We have an E&O coordinator who takes her job very seriously. Mike Moore, vice president for market relations, ensures that we maintain quality relationships with our carriers, and that we're matching our submissions with carriers that have an appetite for those risks. We have a very high-- caliber management team."