Purmort Insurance Agency’s Family Tree’s Roots Go Back to 1876
When I stepped from the hot sunshine and left the traffic speeding along Sarasota, Fla.’s busy Bee Ridge Road into Al Purmort Insurance Agency Inc.’s cool air-conditioned lobby, it was like taking a step back to the early 20th century.
Although the offices are in a modern glass building, the first thing to draw your attention as you step into the lobby are historical photos mounted near the entrance, showing several generations of Purmort’s, signifying the family’s long and proud heritage in the business, going all the way back to Minor La Doyt Purmort in 1876!
If there were an award for being one of the oldest families in the insurance business, there is no doubt Al Purmort Sr., president, would take all honors, hands down.
Founded agency in Sarasota
In 1957, when Al’s father Paul W. Purmort took early retirement as secretary of the Central Mutual Insurance Co. in Van Wert, Ohio, the family, including two brothers, Al and Wells, moved to Sarasota. They considered opening a new agency and Paul looked around and even considered buying an agency in Fort Lauderdale, Fla.
“It took us several years to go through the motions, but in 1958 my father, Wells and I started Purmort and Martin Insurance, in Sarasota,” Al said. In 1959, we joined the Mutual Agents Association, which later became the Professional Insurance Agents of Florida.
Al’s father Paul came to work every day, even in his 80s. In 1985, Al left Purmort and Martin to start Al Purmort Insurance Inc. Wells is still a partner there, while his son Jamie is an agent.
The Purmort family connection to the insurance business goes back to 1876, when a group of farmers, sitting around on a front porch in Van Wert, Ohio, were complaining about their high insurance rates–they decided to start the Van Wert County Mutual Insurance Association, which is now the Central Mutual Insurance Co. Al’s great- grandfather, Minor La Doyt Purmort was secretary and the president was John S. Brumback, a cousin and also a local bank president.
Shaped insurance industry history
In 1915, Al’s grandfather, Clyde Allen La Doyt Purmort played a key role in shaping insurance industry history. Central Mutual Insurance Co., Indiana Lumberman’s, Pennsylvania Lumberman’s, Lumberman’s of Mansfield, Ohio, and an insurance company in Boston joined together to insure lumber yards.
Central Mutual’s territory was Illinois, Wisconsin and Minnesota–they had an agent in Milwaukee who did inspections.
“Central Mutual had a bad loss ratio, so my great-grandfather and great-uncle were discussing the situation,” Al said. “A young man approached them and promised that if they would send him to Chicago to take that agent’s place, he could straighten out the situation.”
The volunteer brought the loss ratio into line–his name was James Scott Kemper.
In 1916, Illinois passed the Employer’s Liability Act and big Eastern stock companies raised their rates 300 percent.
The Southern Lumber Association came to Chicago and asked, “Jamie, you know insurance, what should we do?”
He suggested the formation of the Lumberman’s Mutual Casualty Co., which subsequently became Kemper Insurance–and the rest is history.
Central Mutual connection remains strong
Many Purmort family members remained with Central Mutual and are still there, according to Al.
“In 1924, my grandfather Clyde La Doyt Purmort was president of Central Mutual and president of the National Association of Mutual Insurance Companies,” Al explained. “My grandfather received a letter from the American Construction Council saying they were trying to upgrade the quality of construction,” Al explained as he walked into a nearby conference room.
A letter, on display on the conference room wall, acknowledges Clyde’s experience and standing in the industry. It asks him to help the American Construction Council upgrade the quality of construction by nominating someone from his organization, or if he could serve as a member of the board, it would be greatly appreciated. The letter is signed by President Franklin D. Roosevelt.
In the late 1930s, when Al’s grandfather retired, his brother Charles Meredith Purmort became president of Central Mutual; when he retired, his cousin La Doyt Purmort became president; when he retired Frances Walworth Purmort became president; when he retired his son Francis Walworth Purmort, Jr. became president; and now his son Bill is president. The company has a surplus of close to $300 million.
To reiterate, a list of Purmorts in the insurance business includes: Minor La Doyt Purmort, Clyde Allen La Doyt Purmort, Charles Merideth Purmort, La Doyt G. Purmort, Francis Walworth Purmort, Paul Walworth Purmort, Paul Walworth Purmort, Jr., Francis Walworth Purmort Jr., Clyde Allen La Doyt Purmort II, James Roger Wells Purmort, Clyde Allen La Doyt Purmort III, and James Roger Wells Purmort, Jr., Timothy Lee Purmort.
Gateway: From ‘Two-Man’ Show to Leading Florida Independent Broker
When Fred and Hortense Stanton moved to Fort Lauderdale, Fla. and opened Gateway Insurance Co. in 1952, they had little expectation that it would become a leading independent broker.
Gateway was a retirement business for the Stanton’s, who moved south after Fred’s long career as a New England field representative at Great America Insurance Co.
It was a “two-man show,” recalls their son, Dave, now one of four Gateway managing directors. “My father called on clients and handled claims and my mother occasionally came in to type policies and do office work.”
Peter, the oldest son, joined the agency in 1958 and Dave followed in 1968, a year after his father retired. Annual revenues were $30,000, a “comfortable” living for two people. But Peter wanted to grow the business, and recruited his younger brother.
“I was graduating from Florida Atlantic University in finance and planned to become a stockbroker. I was 23 and newly married,” Dave said. “My father decided to retire again and my brother wanted me to help build the business. Peter persuaded me I would be better off working with him than joining a brokerage firm. He was right. I’m still here.
“We were in the right place at the right time,” Dave added. South Florida was starting to grow rapidly, as the economy diversified and became less tourism-oriented.
Much of Gateway’s rapid growth is because it has been ahead of the curve in focusing on productivity, even going completely paperless in 1998.
“We realized that the way to grow the agency was to keep sales people selling,” Dave said. “It was taking a big change to have separate sales and service people. Previously the same guy who sold insurance typed the policy, collected the money and handled the claims.
“Then we started asking other agents to join us and built a sales staff of people with strong experience,” Dave said. Ten years later gross revenues were $900,000 a year.
The agency’s third partner, Michael Weinberg, joined the firm in 1976. “He brought a tremendous amount of ability,” Dave said. “He studied insurance and risk management at the University of Georgia and worked in Atlanta, but wanted to move to Florida because his wife’s family was here. He did some homework and decided to join Gateway.” Weinberg became a partner in 1982.
By 1988, revenues were $1.8 million. But the early 90s were challenging. In the wake of Hurricane Andrew in 1992 and $26.5 million in property damage, Florida became a difficult market. For the first time in its history, for two years Gateway’s revenues were down.
“We worked through tough times, and were back on a growth pattern by 1998,” Dave said. By 1995 revenues exceeded $3.6 million. Peter Stanton was thinking about retirement.
“Mike and I realized we needed an aggressive acquisition program to continue our growth,” Dave recalled. “We were fortunate to attract a financial partner who bought Pete’s interest and provided financing for acquisitions.” The silent partner’s representative, Luis Campano, is today one of Gateway’s four managing directors.
In the next five years Gateway negotiated five acquisitions–either of entire agencies or of books of business, bringing in $4 million in new revenue. Total revenues increased from $6 million in 1998 to $14 million last year. Branch offices were opened in Bartow and Lake Worth.
“About halfway through this period, Michael and I were starting to wear a little thin. We realized we needed someone who was more of a business guy than an insurance guy,” Dave said. “So we asked Robert Zobel, a CPA and attorney with background both as an independent accountant and staff executive, who we knew from Deloitte & Touche, to help us search. He said he might be interested in the position.”
Zobel joined Gateway. “He carries equal weight in running the business today,” Dave said.
Gateway, a RiskProNet International Inc. member, writes personal, commercial, financial services, employee benefits, transportation and condo and homeowners insurance.
While Dave Stanton is the key point person for RiskProNet contacts, members also work closely with Gregg Waltz, executive vice president and Tim Dawkins, senior vice president. Both joined the firm as a result of acquisitions.
Dawkins sold his agency to Gateway and decided to stay on.
“We really wanted him to continue to work with us,” Dave said. “He has a tremendous amount of knowledge and brings a lot of talent to the table.”
Waltz came via the purchase of a book of business, bringing expertise in the condominium and homeowners associations that are particularly prevalent in resort and retirement areas such as Florida.
“We were not in the condominium business at all until Gregg joined us. Thanks to him, we are one of the major players in Florida. He put us on the map in the condominium market,” Dave said.
“We try to grow and be innovative at all times. The latest step is to give each employee dual desktop monitors so they can have more programs open at the same time,” he continued. “I may need to look at a policy and also at a letter a client wrote about it. Now I don’t have to spend time finding room for both on the screen and going back and forth. We can look at the policy on one monitor and the correspondence on the other.”
Gateway continues to be a family affair. Daughter Paige Kelley, now vice president of operations, has worked at Gateway since she was in high school. “She is one of our most valuable people because she has done virtually every job here,” Dave said.
Son Bryan, an All-American tennis player at Florida State, briefly pursued a career in tennis but returned to insurance as a producer. Dave’s wife, Lin, used to be a part-time bookkeeper but has retired to take care of Kelly’s 6-year-old.
Watson Started with $25,000 in Premiums
The Watson Insurance Agency of Gastonia, N.C., now in its third generation, started more than 70 years ago as a spin-off from a local bank at a town in the North Carolina foothills with a population of approximately 20,000.
Thomas Craig Watson Sr. took care of customer’s insurance needs at the bank. As banks became more regulated in the 1930s, it was decided to spin off the insurance operation.
Watson opened his doors in 1934 with the bank’s blessing, customers whose premiums totaled $25,000 a year, and a loan from a wealthy local textile executive.
Watson’s signed his first contract with the Central Mutual Insurance Co. in Ohio. More than 70 years later the agency still represents Central Mutual. It also has five offices, 78 employees and total premiums of $80 million. The founder’s son and two grandsons follow the customer service traditions established by the founder.
“Dad’s philosophy was that you put the client’s interest first,” Thomas Craig Watson Jr. said. “If you take care of the client, you automatically take care of yourself.”
The biggest challenge has always remained the same, Craig believes. “It’s getting and keeping the best people. They’re the ones who will help us survive.”
The agency has three employees who have worked more than 50 years and the average tenure is 16.5 years.
Revenue per employee has doubled in the past 10 years, an achievement Robert Penn Watson, the founder’s grandson and vice president/secretary, believes is due to emphasis on sales.
“We focused on sales, but we realized we needed to put more effort into it,” Robert, 39, said. “We started a producer recruitment program, hiring college students as summer interns, and moving them into sales where they work closely under the direction of mentors. The result is that all of our new producers except one have validated in less than two years, and we expect the remaining one to validate this year. One even validated in 19 months.
“When I started 18 years ago, you had a cubicle, a telephone and a telephone directory and you were told to start making cold calls. It took me a lot longer than two years to validate. We’ve found that it makes a huge difference if a new employee has a mentor who will help to guide him,” he added.
Watson is active in RiskProNet International Inc., a network of 28 insurance brokers across North America. “We obtain excellent marketing information from across the country and our affiliation gives us the ability to compete with global brokers. Our membership also has been a factor in our increase in sales,” he said.
The global affiliation, as well as the addition of a producer who was born in Europe and educated in the United States, has helped the agency in targeting foreign-owned companies in western North Carolina. Statistics show that there are more than 150 German-owned companies in the Carolinas. Since this effort began, many of them have become Watson Agency clients.
Rob Watson joined the agency in 1986, and his brother Thomas Craig Watson III came on board a year later. Watson III today is the chief operating officer.
The agency serves small to mid-size businesses, multinational entities, school systems and associations as well as individuals.