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

REGIONAL ANALYSIS Agencies with Revenues UNDER $5,000,000

Geographic Region:

Northeast

Southeast

Midwest

Southwest

West

% of Agencies Located in Each Region

29.4%

27.5%

21.6%

11.8%

9.8%

Net Revenue Growth (Organic)

8.3%

12.6%

11.0%

14.7%

12.0%

Pre-tax Profit

17.3%

19.7%

23.7%

29.0%

26.3%

Pro Forma Pre-tax Profit

27.8%

26.3%

31.1%

36.0%

26.0%

Profitability as % of Net Revenues

Operating Pre-tax Profit

4.8%

9.1%

13.0%

17.8%

19.4%

EBITDA

20.1%

21.2%

26.3%

30.4%

27.7%

Pro Forma EBITDA

30.6%

27.8%

33.8%

37.4%

34.0%

“Rule of 20” Score

20.6

24.0

24.3

31.3

29.5

Revenue per Employee

$130,465

$142,076

$141,868

$180,111

$152,756

Compensation per Employee

$77,310

$84,858

$73,804

$87,707

$81,601

Productivity

Spread per Employee

$53,155

$57,218

$68,064

$92,404

$71,155

Commercial P&C Producers

$126,778

$117,558

$84,695

$143,858

$96,833

Personal P&C Producers

$59,301

$48,875

$49,537

*

*

Pay Levels for Producer

Life & Health Producers

$184,403

$104,566

$82,892

$135,289

$68,426

Multiline Producers

$82,954

$96,290

$97,094

$187,312

$95,000

Commercial P&C CSRs

$46,746

$42,174

$35,496

$40,854

$50,750

Personal P&C CSRs

$36,333

$33,479

$28,276

$30,055

$39,463

Pay Levels for CSRs

Life & Health CSRs

$37,690

$26,519

$22,558

*

$38,000

Multiline CSRs

*

$26,816

$34,842

*

*

PL - National

3.2

3.6

2.5

4.3

5.0

PL - Regional

6.2

2.9

5.4

4.3

3.5

Number of Carriers

CL - National

4.1

4.5

5.6

13.5

5.0

CL - Regional

7.2

5.8

8.2

14.5

3.8

EB - All

17.0

11.7

18.8

12.0

16.1

Total PL Comms Placed

14.6%

29.6%

*

*

*

Service Center Use

Total CL Comms Placed

11.4%

2.1%

8.1%

3.6%

5.5%

% of Agencies Making an Acquisition in the last 12 Mths

3.3%

0.0%

9.1%

0.0%

10.0%

*Insufficient Data

177

2007 Best Practices Study | Appendix

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