2007 Best Practices Study

2007 Best Practices Study

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

POPULATION DENSITY Agencies with Revenues OVER $5,000,000

Less than 50,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

50,000 to 250,000

% of Agencies in Each Population Size

13.8%

22.3%

30.9%

33.0%

Net Revenue Growth (Organic)

15.6%

8.9%

12.2%

13.1%

Pre-tax Profit

24.3%

14.2%

15.8%

16.6%

Pro Forma Pre-tax Profit

31.1%

20.8%

20.1%

24.3%

Operating Pre-tax Profit

11.6%

2.1%

5.9%

4.3%

Profitability as % of Net Revenues

EBITDA

27.6%

17.4%

18.9%

19.2%

Pro Forma EBITDA

34.4%

24.0%

23.1%

27.0%

“Rule of 20” Score

22.6

17.9

21.2

23.6

Revenue per Employee

$170,200

$158,206

$162,306

$188,292

Productivity

Compensation per Employee

$96,049

$103,846

$106,127

$122,470

Spread per Employee

$74,151

$54,360

$56,180

$65,822

Commercial P&C Producers

$182,169

$221,260

$232,340

$232,608

Personal P&C Producers

$46,600

$70,328

$77,785

$99,885

Pay Levels for Producer

Life & Health Producers

$151,505

$206,950

$226,436

$233,265

Multiline Producers

$204,250

$205,181

$147,171

$181,864

Commercial P&C CSRs

$53,007

$49,018

$48,689

$54,423

Personal P&C CSRs

$40,900

$41,242

$38,870

$43,045

Pay Levels for CSRs

Life & Health CSRs

$45,192

$42,047

$48,035

$51,801

Multiline CSRs

*

*

*

*

PL - National

9.2

8.8

8.2

10.5

PL - Regional

8.0

5.7

6.5

5.6

Number of Carriers

CL - National

24.0

25.5

17.7

25.2

CL - Regional

15.5

15.0

27.3

23.2

EB - All

24.5

47.4

45.6

38.31

Total PL Comms Placed

10.3%

37.8%

22.6%

23.2%

Service Center Use

Total CL Comms Placed

8.4%

3.0%

2.7%

1.7%

% of Agencies Making an Acquisition in the last 12 Mths

30.8%

19.0%

20.7%

25.8%

*Insufficient Data

176

2007 Best Practices Study | Appendix