In 2022, Dew, then 20% owner of WinStar, learned that the other two owners would be retiring. She didn’t want to see the agency absorbed by the large buyers circling overhead and decided she would buy it herself—even if it meant mortgaging her house.
Stephanie Dew
President, Agency Owner
Cedar Park, Texas
In 2022, Dew, then 20% owner of WinStar, learned that the other two owners would be retiring. She didn’t want to see the agency absorbed by the large buyers circling overhead and decided she would buy it herself—even if it meant mortgaging her house.
“It devastated me to think that these employees who have worked so hard to build up the agency would have to watch it get gobbled up by another agency that I didn’t think would value our clients the way we do,” Dew says. “I went to my family first to make sure my husband and kids were on board. And they knew this was my dream. We had our house pretty much paid off, and I took a loan on it and did everything I needed to make it happen.”
WinStar’s defined niches propel its growth, from wineries and water entities to emergency services. The agency has been a Best Practices agency since 2019.
Process of purchasing an agency?
You have to be all in. I had kids in college. I had a kid who just got married. I had just become a grandma. And I was willing to go back into debt after working so hard to get myself financially stable. I was willing to say, “I’m going to take on this huge risk because I believe in WinStar.” My employees have seen that I want this more than anything and they follow suit.
Lessons learned as president?
You reap what you sow. If you invest in your employees, they will then become more engaged and invest in one another and what they do. And if we’re all doing that, then our clients are going to feel it.
Your past life in marketing?
I learned the importance of targeted marketing and identifying potential customers we actually want, so we’re not just doing a big swath of whatever comes in. I tell each sales team every year, “I want
How did you get into insurance?
I lucked out. I graduated from college and needed a job. I worked for Kemper and then I went to the brokerage side at WTW. From there, I went to a managing general agent (MGA) and then to an agency. I feel blessed that I got to see so many facets of insurance.
I also worked for Gladfelter Insurance Group, which is in Pennsylvania but we lived in Texas. We'd had our fourth child and I had to travel extensively. I was on the road all the time with four children, which was tough. One of the agencies Gladfelter worked with was Winstar, and I asked if they would be interested in hiring me. In 2016, two other employees and I bought the agency from the principal.
Becoming president and owner of WinStar?
The two other owners reached retirement age and I had the incredible opportunity to buy them out. It was a very tough process. Agencies were selling at huge multiples and it was difficult to secure a loan. I went to about a dozen different banks, but because the multiples were so large, I got denied one after another.
Finally, in a partnership that's really unheard of, our largest carrier actually facilitated a successful loan for us. I got involved because we were in such a strong partnership and that allowed me to take full ownership of the agency.
Biggest lesson learned from purchasing an agency?
Relationships are important. Knowing your numbers is important. I was against some big players. Even now, I get calls almost daily from people wanting to purchase us. The big fish are eating the smaller ones. You need to be strong and forthright and know what you want. Have a solid plan but also be willing to look at alternatives. It took a full year of negotiating before the deal finally went through.
One aspect that surprised me was the tremendous responsibility I felt for each of the employees. That accountability weighed heavily on me. My decisions and how I lead this organization not only affects me and my family but affects all the employees and their families.
Equipping your team to succeed?
Through Marit Peters, Independent Insurance Agents of Texas president and executive director, we did the Kolbe A Index with every single employee. We also did the StrengthsFinder test from Gallup to identify each employee's strengths. And we ran every employee through the Working Genius assessment, which helps identify their geniuses and what they bring to the team.
It was time-consuming but very powerful. It's helped us understand one another and what we bring to the table. In some cases, we realized that we had people in the wrong roles. Once we did that, we were also able to come together and establish our core values and the culture we collectively wanted to create.
Advantages of serving as the regional director of VFIS of Texas?
VFIS is the largest program in the country for emergency service organizations. Our agency has been the regional director of Texas since 1985. We provide insurance to over 1,500 fire and EMS organizations throughout Texas. Some local agencies also access the program through us.
In the hard market, we're seeing a lot of carriers restricting coverage. But the VFIS program just recently expanded and enhanced their coverage. You'll see coverages that you won't find in any other insurance policies, such as guaranteed replacement cost.
Offering unique and defined niches?
We don't just snorkel on the top. You can only see so much when you're in the ocean snorkeling. We put on the scuba gear and go down. We want to attend every industry event. We do a lot legislatively. We get involved in trade associations. Anything to know our customers and understand how to best help them. We also find committed carrier partners that want to have that relationship with us and the customer. We maintain a 97%-98% retention ratio.
Client approach?
We still believe in the old-fashioned, face-to-face principles. We have a huge fleet of sales cars and our guys put 40,000 miles on each car every year from going to see our customers. We might have a small volunteer fire department that has a $2,500 premium policy but our agents will meet face-to-face with the chief to make sure that they understand the coverage and that they're renewing.
Benefits of participating in the Big “I" Best Practices Study?
The only way to become better is to have clear benchmarks. Best Practices does exactly that. The report is super comprehensive and educational. I spend hours looking through it and checking our numbers, seeing where we met the mark, where we exceeded it and where we need to improve.
I also really like the annual round table where you can meet with other Best Practices agency principals and share ideas and discuss trends. I always learn so many great things and have so many ideas I want to implement.
Goals for the next five years?
Grow, grow, grow. With all the acquisitions, we need to continue making smart decisions, forming good partnerships and finding areas where we can grow niches that fill a need. We are a catastrophe state. We want niches that don't flow so much with circumstances. Everybody needs emergency service organizations, everybody needs water, and hospice and home health care are not going to disappear.
Favorite part of being an independent agency owner?
I learn something new and grow every single day. I love being faced with a challenge and working collectively with my team to find solutions. I enjoy being able to chart our path in an industry that's always evolving and always advancing at an incredible pace. I'm fortunate—I work my dream job and I love doing it every day.
AnneMarie McPherson Spears is IA news editor.
