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 OVER $5,000,000

Geographic Region:

Northeast

Southeast

Midwest

Southwest

West

% of Agencies in Each Population Size

23.4%

33.0%

18.1%

10.6%

9.8%

Net Revenue Growth (Organic)

14.7%

13.9%

6.7%

12.6%

11.1%

Pre-tax Profit

19.3%

15.8%

17.4%

13.2%

17.4%

Pro Forma Pre-tax Profit

28.6%

20.9%

21.5%

22.4%

22.4%

Profitability as % of Net Revenues

Operating Pre-tax Profit

5.2%

7.0%

4.1%

0.6%

7.0%

EBITDA

23.7%

18.1%

20.3%

15.0%

20.5%

Pro Forma EBITDA

33.1%

23.2%

24.4%

24.2%

25.4%

“Rule of 20” Score

25.7

23.6

17.4

19.8

21.6

Revenue per Employee

180,768

161,360

161,573

187,916

176,708

Productivity

Compensation per Employee

108,204

106,246

103,657

132,365

110,264

Spread per Employee

72,564

55,113

57,916

55,551

66,444

Commercial P&C Producers

182,166

251,225

219,837

235,862

208,293

Personal P&C Producers

57,965

102,208

59,290

*

*

Pay Levels for Producer

Life & Health Producers

200,804

220,006

222,596

200,425

195,045

Multiline Producers

179,995

165,293

*

154,832

177,821

Commercial P&C CSRs

56,442

48,062

48,744

53,548

51,577

Personal P&C CSRs

44,304

38,100

40,023

41,368

43,563

Pay Levels for CSRs

Life & Health CSRs

49,951

44,382

47,787

50,680

50,984

Multiline CSRs

*

*

*

*

*

PL - National

8.3

12.7

7.1

6.3

7.6

PL - Regional

7.9

5.4

7.2

4.8

5.4

Number of Carriers

CL - National

24.5

24.1

13.6

15.7

33.1

CL - Regional

15.9

22.4

28.5

10.9

28.4

EB - All

36.4

41.9

43.2

40.2

44.0

Total PL Comms Placed

32.3%

27.2%

7.7%

*

34.1%

Service Center Use

Total CL Comms Placed

7.5%

3.0%

1.0%

0.6%

2.3%

% of Agencies Making an Acquisition in the last 12 Mths

27.3%

19.4%

23.5%

30.0%

21.4%

*Insufficient Data

178

2007 Best Practices Study | Appendix

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