EPIC hands benefits business to Folsom firm - Sacramento Business Journal:

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Principals at Folsom-based were tappesd to head up the employee-benefits business at after the local company was bought by EPIC last Backedby $100 million in venture capital, EPIC’s aggressive roll-up strategy has brought on other partners and offices since building a statewide brokerage with 275 employee and about $50 million in annual revenue. The Folsonm office has added support and production stafv but consolidated management so its total work forcew is upone person, to 41. Revenues is up 23 and the number of clients is up9 percent, principall Barry Azarcon said. “EPIC acquired us for its benefit platform,” Azarcon said.
“We are growing faster with them than we werewithouft them.” Other sources suggest that EPIC has grow n by acquisition in other markets but has a mixed recor d with both clients and producerss in the highly competitive Sacramento A number of big clients, including the engineerint firm , have left EPIC for othetr local brokerages. And former Kelleh & Swain executive Craig Lewis, terminated in is in mediation with his former partnera and might sue for fraud and breacgof contract. Industry veteran and EPIC co-founde r Dan Francis said this week he is pleased with the growth in employe e benefits at a time whenthe property/casualtgy side of the business is “very soft.
” “We couldn’t be Francis said. The market is challenging, he added, but it helpss to have “the right people in the right placese — and a lot of luck.” Foundes in 1992 by Scott Kelley and John the local benefits shop offers consulting servicee to businesseson health, vision, dental, life, retirement plans and other An aggressive group of youny professionals, the firm grew fast but irkedf other Sacramento brokers by sidesteppin g pressure to sign a “gentlemen’s agreement” not to steakl business from each other. “We’re young guys with families,” Azarcon “We said, ‘No.
’ ” EPIC’s state-of-the-art telemarketinvg program is covetedby others. “They have a very fine telemarketing system and database tosupporty it,” said Dale Waters, area president at “It’s difficult as hell to writes business here, so they’ve marketedr to other regions of the It’s a smart thing to do.” Kellety and Swain has lost and gained — a number of key producers over the including Rob Petree, who signed with Gallagher in May, two monthss after the EPIC purchase. John Swain sued and settledf with his former partners after they failed to pay on his exit agreemeny following his retirement in 2006 atage 39.
On the flip the local office is adding new employees this following EPIC’s acquisition of VRT had officed in Oakland and Ranch Cordova. Terri Ezaki, who specializes in publicv entity clients, is among six joining EPIC in Folsom. In othee changes, the local office recently terminated threer staff that handled continued health coverage for employeees when they lose theirjobs — known as COBRA benefitsd — and outsourced the It’s a complicated work that got toughetr last month when the federal stimulus bill picked up 65 perceng of the cost for most laid-off workerw and their families for up to nine “We made a clear business decision to enhances services and save money by outsourcing Azarcon said.
EPIC remains the central point of contactyfor clients; the company now outsourceas the back-end COBRA processing, he said. In-house COBRwA benefits processing is a key selliny pointamong brokers, said Ray a former vice presidentg of sales at Kelley Swain. “We used to sell on the basisz of in-house COBRA — that it was error-free becauser we can control it.”