2010 Best Practices Study
2010 Best Practices Study
Mgmt. Perspectives
Population Density Agencies with Revenues OVER $5,000,000
Profile
Revenues
Expenses
Less than 50,000
50,000 to 250,000
250,000 to 1,000,000
Over 1,000,000
Profitability
Geographic Region:
% of Agencies Located in Each Region
4.0%
9.8% 14.3% 15.6%
Employee Overview
Net Revenue Growth (Organic)
0.2%
2.8%
-1.2%
0.7%
Producer Info
Pre-tax Profit
14.4% 11.9% 13.0% 13.1%
Staff Service Info
Pro Forma Pre-tax Profit
19.7% 15.7% 17.7% 17.7%
Profitability as % of Net Revenues
Technology
Operating Pre-tax Profit
4.5%
0.7%
2.0%
3.6%
EBITDA
21.8% 16.4% 16.0% 16.1%
Insurance Carriers
Pro Forma EBITDA
27.1% 20.1% 20.7% 20.7%
Appendix
Value Creation “Rule of 20” Score
13.7
12.9
9.1
11.1
Revenue per Employee
$151,905
$164,926
$165,343
$182,085
Productivity
Compensation per Employee
$92,699
$106,961
$110,936
$122,846
Spread per Employee
$59,205
$57,963
$54,408
$59,239
Commercial P&C
$174,644
$202,337
$218,473
$213,456
Personal P&C
$47,487
$55,523
$101,056
$117,338
Pay Levels for Producers
Life & Health / Financial
$109,810
$177,866
$261,134
$274,184
Multiline
$84,853
$233,173
$184,296
$230,339
Commercial P&C
$46,093
$46,311
$50,140
$53,141
Pay Levels for Service / Sales Support Staff
Personal P&C
$43,073
$38,875
$42,570
$49,180
Life & Health / Financial
$37,579
$43,418
$52,595
$53,510
Multiline
*
*
*
*
Commercial P&C
$64,616
$79,082
$75,893
$96,825
Pay Levels for Account Execs
Life & Health / Financial
$41,309
$78,637
$88,393
$82,038
PL - National
12.2
8.9
10.1
7.3
PL - Regional
7.4
7.7
9.2
8.0
Number of Carriers
CL - National
29.2
26.9
30.2
27.9
CL - Regional
11.3
14.5
22.5
28.9
EB - All
21.9
34.4
56.8
48.8
Total PL Comms Placed
*
31.0% 17.3% 29.8%
Service Center Use
Total CL Comms Placed
8.6%
2.7%
2.2%
2.1%
2010 Best Practices Study
% of Agencies Making an Acquisition in the last 12 Months
11.1% 14.8% 15.6% 20.0%
183
*Insufficient Data
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