2010 Best Practices Study
2010 Best Practices Study
Mgmt. Perspectives
Regional Analysis Agencies with Revenues UNDER $5,000,000
Profile
Revenues
Expenses
Profitability
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
12.9% 12.5% 13.8% 8.4% 6.2%
Employee Overview
Net Revenue Growth (Organic)
0.0% 0.1% 1.4% 1.1% -0.2%
Producer Info
Pre-tax Profit
15.4% 18.8% 21.4% 15.7% 25.7%
Staff Service Info
Pro Forma Pre-tax Profit
20.7% 22.6% 22.8% 25.5% 31.0%
Profitability as % of Net Revenues
Technology
Operating Pre-tax Profit
4.0% 8.7% 9.5% 6.0% 13.1%
EBITDA
17.8% 22.8% 24.8% 17.6% 28.1%
Insurance Carriers
Pro Forma EBITDA
23.0% 26.6% 26.2% 27.3% 33.4%
Appendix
Value Creation “Rule of 20” Score
11.6
13.3
15.2
14.8
16.5
Revenue per Employee $120,305 $134,707 $145,884 $148,073 $148,840 Compensation per Employee $73,267 $80,374 $83,072 $94,123 $76,429 Spread per Employee $47,038 $58,333 $62,812 $53,950 $72,412
Productivity
Commercial P&C
$96,237 $135,901 $110,939 $90,046 $108,290
Personal P&C
$63,729 $70,202 $50,442 $46,014 $54,704
Pay Levels for Producers
Life & Health / Financial
$218,603 $77,023 $60,052 $76,622 $69,531
Multiline
$118,267 $107,768 $102,487 $94,765 $156,847
Commercial P&C
$45,154 $41,897 $53,625 $44,587 $40,877
Pay Levels for Service / Sales Support Staff
Personal P&C
$39,363 $34,190 $35,396 $38,245 $35,079
Life & Health / Financial
$40,051 $30,176 $37,292 $35,301
*
Multiline
$41,544
*
$31,576 $47,141
*
Commercial P&C
$60,074 $59,925 $63,479 $55,788 $46,532
Pay Levels for Account Execs
Life & Health / Financial
$49,075 $38,546 $52,200 $44,000
*
PL - National
4.4
4.4
3.2
5.9
6.5
PL - Regional
5.6
3.9
4.7
2.3
3.2
Number of Carriers
CL - National
6.6
9.0
8.0
8.0
6.4
CL - Regional
5.7
6.5
7.1
3.8
6.0
EB - All
9.6
6.9
9.7
10.3
5.9
Total PL Comms Placed
*
23.3% 59.7% 59.9% *
Service Center Use
Total CL Comms Placed
5.4% 4.0% 24.0% 18.4% 4.0%
2010 Best Practices Study
% of Agencies Making an Acquisition in the last 12 Months
0.0% 3.6% 16.1% 0.0% 0.0%
184
*Insufficient Data
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