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Brothers' Keepers
Companies by Janet Leiser | Senior Editor
To grow the family business, Guy and Doug King offer ownership in the company to top performers willing to work hard. There are three new partners, so far.
M.E. Wilson Co. revenue grew by 21% this year to $7 million, and revenue is expected to more than double to $15 million on $150 million in policy premiums in five years.
Within three years, the 86-year-old company will outgrow its 16,000-square-foot office between downtown Tampa and the North Hyde Park historical district and move into a bigger building.
This growth isn't cheap.
For the past several years, Guy King III and Doug King, the brothers that run the business started by their maternal grandfather, have reinvested all profits in the company to double its sales staff from six to 13. When their father, Guy King Jr., retired in 1981, revenue was about $600,000 on $6 million in policy premiums.
M.E. Wilson may be the oldest and largest private agency in Hillsborough County, but it's no stodgy firm.
There are clients that have been with the agency for two or three generations, including Standard Marine Supply, and some of its 40 employees have been there for decades, including June Magnus, the controller who has worked at M.E. Wilson for 48 years.
But the firm is on the move.
About 40% of its revenue comes from commercial insurance with construction driving much of it, says Guy King, president. It sells most types of insurance, including health, life and disability policies, as well as workers' comp and insurance for nonprofit agencies such as the YMCA. As for personal property insurance, the firm only offers coverage on upscale homes, preferably worth more than $1 million, and expensive automobiles.
"Our model is the old-fashioned, high-service model," says Doug King, 50, the CEO. "We keep enhancing that and looking for companies that appreciate that approach. We help our clients control their claims through risk management. We stop claims before they happen. Some companies just want a cheap price and that's it. That's not our style."
The brothers say they long ago worked out the kinks in running a business together.
"We've been doing this for 20-something years, so it's not that bad," Doug King says.
Says Guy King, 57: "I'm the outside man and he's the inside man. We've worked that out beautifully over the last decade."
Guy King has served on numerous civic organizations on behalf of the company. In fact, Tampa Mayor Pam Iorio once placed his photo on a downtown billboard to honor volunteers. He has served as chairman of the Committee of 100, been in charge of risk management and transportation for the Tampa Super Bowl, helped found the CEO Council of Tampa Bay and lead the city's annual Gasparilla Parade. The Tampa Chamber of Commerce has recognized Guy King as business leader of the year and M.E. Wilson as a small business of the year.
Taking over
When the brothers were young, it was always a given in their household that they would one day take over the family business, says Guy King III.
Their maternal grandfather, M.E. Wilson, known as Gene, started the company in downtown Tampa in 1920.
His daughter, Anne, met Guy King Jr. in the early 1940s at the Temple Terrace hotel and married him six weeks later. King then went overseas to fight in World War II. As a pilot, he flew 50 missions in a B-26 prior to returning to Tampa and going to work with his father-in-law in the insurance agency.
King, who retired in 1981 after his sons graduated from college and took over the firm, passed away in 1990.
But the brothers say they don't plan to pass on the business to their children, and they've turned down numerous buyout offers over the years from banks and national brokerages.
"We're having too much fun," says Guy King.
"I think a lot of people sell because they're not having that much fun or they are offered a price they can't refuse. Who wants to retire? I haven't heard anything good from those who've retired."
Says Doug King: "It has been in our family since 1920. We want to perpetuate it. We're pretty unique and we want to maintain that."
Instead, the brothers decided to bring on top sales people by offering them ownership in the company in exchange for booking new business. Guy King says one of the firm's biggest challenges is finding talented, licensed sales people.
When a sales person hits a predetermined goal, he can buy 10% stock in the firm, though the brothers still maintain majority ownership.
"It's for those who are entrepreneurial and want to take risks," says Guy King.
New partners are Dwight Wilson and Janet Dayton.
In addition, Beth Bennett, who runs an HR outsourcing division, called M.E. Wilson Custom Outsourcing, is a partner. Her group, which brokers professional employment organization services, grew 41% this year.
Other sales people are also on track to become partners.
If all goes as planned, those partners will eventually buy out the brothers and the firm will live on for many more decades.
RISK MANAGERS
Guy and Doug King say M.E. Wilson Co. is far more than an intermediary between clients and insurance companies.
"We spend time, money and effort trying to reshape a client's risk profile," says Guy King III.
In the last year or so, finding property insurance coverage for clients has been more of a challenge than in the past, thanks to the hurricanes that hit Florida.
And it's not always possible to find property coverage for all clients. Older commercial buildings made of metal or frame and near the Gulf are almost uninsurable when it comes to windstorm coverage, says Doug King.
"They get blown over pretty easily," he adds.
Many companies are writing policies on buildings for several times the original premium and excluding wind coverage.
Says Guy King: "We're trying to come up with creative ways to help people cover their property. The whole idea is to come up with a solution for when an event happens that you just can't financially take care of. Some are taking larger deductibles and others are going without windstorm coverage."
Banks seem to have accepted the limited coverage, he says, adding: "The banks are having to go along with it. I'm not sure what's going to happen when the bank examiners start checking with them."
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