2003 Best Practices Study
SPECIAL REGIONAL ANALYSIS Agencies with Revenues Greater Than $2,500,000
AGENCY CHARACTERISTICS
in conjunction with results by revenue group to gain the most complete understanding of the The regional analysis provides another perspective for understanding the Best Practices data in their proper context. However, characteristics regarded as unique to agencies in a certain part of the country or any regional factors influencing agency operations are best considered
operating characteristics of the Best Practice agencies.
SE
MW SW
W
NE
Growth Net Revenue Growth
15.3% 19.1% 16.5% 21.7% 18.5%
Profitability as % of Net Revenues Pre-tax
12.3% 9.9% 14.5% 16.8% 10.3% 19.4% 17.9% 19.8% 20.3% 18.3% 5.2% 3.1% 6.7% 10.0% 1.5%
Pro Forma Pre-tax Operating Pre-tax
Productivity Revenue per Employee
$134,644 $140,889 $137,173 $130,340 $142,276 $81,178 $96,096 $90,461 $83,109 $96,151 $53,465 $44,793 $46,713 $47,231 $46,125
Compensation per Employee Spread per Employee (1)
Pay Levels for Producers Commercial P&C Producers Personal P&C Producers
$133,602 $181,445 $165,452 $159,657 $174,489 $67,524 $64,731 $52,665 $80,292 $57,261 $181,909 $192,869 $128,666 $130,222 $152,628
Life & Health Producers
$109,681 $117,951 $174,302
*
$118,655
Multiline Producers
Pay Levels for CSRs Commercial P&C CSRs
$42,458 $41,974 $36,808 $41,411 $47,576 $34,504 $33,739 $32,174 $32,315 $39,905 $42,964 $40,789 $37,919 $38,755 $46,270
Personal P&C CSRs Life & Health CSRs
*
*
*
*
$31,830
Multiline CSRs
Number of Carriers PL - National
8.7 6.0
6.2 3.1
5.1 3.9
8.3 2.5
7.3 2.9
PL - Regional CL - National CL - Regional
20.4 16.3
17.6 15.7
25.4 13.2
15.8
23.5 29.5
4.5
Service Center Use Total Pers'l Lines Commission placed in Carrier Service Center Total Comm'l Lines Commission placed in Carrier Service Center
27.5% 2.4% 0.6% 17.4% 10.8%
6.5% 1.2% 0.7% 1.5% 2.3%
% of Agencies Making Acquisition in Last 12 Months
27.8% 23.1% 17.6% 25.0% 33.3%
* - Insufficient Data
(1) Total revenue per employee minus compensation per employee. While revenue per employee has been a standard productivity measure, the "spread" measures the dollars per employee available to pay all other agency expenses and generate a profit for the agency.
Page 8 2003 Best Practices Study
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