2003 Best Practices Study

SPECIAL POPULATION DENSITY ANALYSIS Agencies with Revenues Less Than $2,500,000

AGENCY CHARACTERISTICS

agency in a smaller community. As always, consider these data in light of the results achieved by agencies of a similar revenue size to gain the best understanding of Best Practices agencies. The population density analysis provides another valuable picture of the operating characteristics of the agencies included in the Best Practices Study Executive Update. In general, a comparison among agencies of a similar size is the best comparison basis, but an evaluation based on community size can prove helpful when an agency is atypical in nature, such as a larger revenue

Less than

50,000- 250,000

250,000- 1,000,000

Over

1,000,000

50,000

% of Agencies Located in Each Population Size

47.8%

24.6%

14.9%

14.5%

Net Revenue Growth

10.2%

15.8%

8.8%

2.0%

Profitability as % of Net Revenues Pre-tax

14.1% 21.2%

15.9% 27.0%

23.3% 27.7% 17.5%

10.4% 20.0%

Pro Forma Pre-tax Operating Pre-tax

5.4%

6.2%

1.1%

Productivity

Revenue per Employee

$100,528 $57,143 $43,386

$130,732 $82,353 $48,379

$113,022 $58,443 $54,579

$133,648 $84,570 $49,078

Compensation per Employee

Spread per Employee

Pay Levels for Producers Commercial P&C Producers

$78,422 $39,568 $72,833 $58,619

$92,895 $67,566 $169,235 $140,551

$113,461 $87,425 $76,445 $59,194

$111,401

Personal P&C Producers Life & Health Producers

* *

Multiline Producers

$120,886

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$30,525 $25,197 $20,797 $26,060

$37,299 $30,611 $32,365

$40,212 $32,273 $27,230 $33,000

$41,551 $37,197 $33,250

Life & Health CSRs Multiline Producers

*

*

Number of Carriers PL - National

2.3 3.8 3.2 4.6

2.3 4.3 5.5 8.1

2.9 4.1 2.4 3.4

3.4 3.0 5.9 4.5

PL - Regional CL - National CL - Regional

Service Center Use Total Pers'l Lines Commission placed in Carrier Service Center Total Comm'l Lines Commission placed in Carrier Service Center

*

*

*

*

2.5%

1.4%

*

15.1%

* - Insufficient Data

Page 5 2003 Best Practices Study

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