2001 Best Practices Study

SPECIAL POPULATION DENSITY ANALYSIS Agencies with Revenues Greater Than $1,250,000

AGENCY CHARACTERISTICS

agency in a smaller community. As always, consider these data in light of the results achieved by agencies of a similar revenue size to gain the best understanding of Best Practices agencies. The population density analysis provides another valuable picture of the operating characteristics of the agencies included in the Best Practices Study Executive Update. In general, a comparison among agencies of a similar size is the best comparison basis, but an evaluation based on community size can prove helpful when an agency is atypical in nature, such as a larger revenue

Less than

50,000- 250,000

250,000- 1,000,000

Over

50,000

1,000,000

% of Agencies Located in Each Population Size

12.5%

24.2%

32.5%

30.8%

Net Revenue Growth

15.3%

11.9%

16.5%

12.4%

Profitability as % of Net Revenues Pre-tax

12.9% 18.6%

13.5% 19.6%

9.8%

11.6% 17.7%

Pro Forma Pre-tax Operating Pre-tax

16.7% -0.4%

2.5%

2.2%

2.7%

Productivity

Revenue per Employee

$115,661 $70,351 $45,309

$113,459 $69,795 $43,664

$120,286 $79,880 $40,405

$123,074 $80,499 $42,575

Compensation per Employee

Spread per Employee

Pay Levels for Producers Commercial P&C Producers

$112,376 $38,934 $93,022 $105,667

$123,835 $49,048 $111,392 $112,564

$121,705 $57,445 $156,472 $106,898

$148,121 $90,828 $145,533 $84,851

Personal P&C Producers Life & Health Producers

Multiline Producers

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$38,383 $30,781 $33,263

$33,787 $27,277 $35,418

$37,025 $30,433 $34,303

$51,410 $34,314 $37,448

Life & Health CSRs

Multiline CSRs

*

*

*

*

Number of Carriers PL - National

6.8 4.7

4.4 4.4

5.6 2.7

8.2 3.0

PL - Regional CL - National CL - Regional

15.4

12.9 16.1

15.5

24.6 15.0

6.5

8.2

Service Center Use Total Pers'l Lines Commission placed in Carrier Service Center Total Comm'l Lines Commission placed in Carrier Service Center

*

7.2%

10.9%

17.2%

1.7%

1.6%

5.7%

1.5%

* - Insufficient Data

12