2015 Best Practices Study

2015 Best Practices Study

Key Benchmarks Profile

Population Density Agencies with Revenues OVER $5,000,000

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Less than 50,000

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Where Home Office is Located:

% of Agencies Located in Each Population

8.2%

9.7%

14.4% 19.0%

Net Revenue Growth (Organic)

6.2%

7.9%

6.3%

10.5%

Pre-tax Profit

17.8% 23.3% 15.4% 16.9%

Pro Forma Pre-tax Profit

19.9% 20.1% 17.7% 20.3%

Profitability as % of Net Revenues

Operating Pre-tax Profit

8.0%

9.2%

7.9%

9.2%

EBITDA

21.7% 20.6% 17.7% 19.8%

Pro Forma EBITDA

23.8% 17.4% 19.9% 23.2%

Value Creation “Rule of 20” Score

15.9

17.7

15.3

21.4

Revenue per Employee

$164,868

$172,697

$187,720

$201,183

Productivity

Compensation per Employee

$95,865

$108,105

$121,443

$129,667

Spread per Employee

$69,003

$64,592

$66,278

$71,517

Commercial P&C

$133,564

$224,733

$213,771

$213,132

Personal P&C

$57,469

$64,251

$96,831

$89,579

Pay Levels for Producers

Group Life & Health / Financial

$150,780

$196,331

$223,534

$199,538

Multi-Line

$105,147

$136,513

$263,344

$206,603

Commercial P&C

21.0

26.3

39.0

26.5

Total Number of Service / Sales Support Staff per Line of Business

Personal P&C

13.9

6.9

12.5

10.3

Group Life & Health / Financial

5.8

12.0

18.3

12.9

Multi-Line

*

*

*

*

Commercial P&C

22.5% 20.8% 18.3% 20.6%

Total Service / Sales Support Staff Payroll as % of LOB Revenue

Personal P&C

25.8% 24.5% 26.0% 25.9%

Group Life & Health / Financial

17.9% 15.5% 15.0% 18.4%

Multi-Line

*

*

*

*

Personal P&C

26.5

17.9

25.9

25.4

Number of Carriers

Commercial P&C

49.3

40.6

69.2

54.8

Group Life & Health / Financial

35.1

41.8

65.8

47.0

Total PL Comms Placed (as % of PL Revenues) Total CL Comms Placed (as % of CL Revenues)

17.0% 20.4% 18.0% 18.3%

Service Center Use

2015 Best Practices Study

4.4%

1.8%

5.4%

2.9%

% of Agencies Making an Acquisition in the last 12 Months

12.5% 15.8% 25.0% 35.1%

160

*Insufficient Data