2010 Best Practices Study
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
Revenue by Account Size (as measured by Comm. & Fees – not premium)
Mgmt. Perspectives
Profile
Average
+25% Profit
+25% Growth
Commercial P&C Total Commissions & Fees in Book
Revenues
$2,168,517
$1,731,487
$2,120,638
Greater than $25,000 % of Book
Expenses
25.4%
27.8%
41.1%
Profitability
# of Accounts Total Revenue
10.1
9.2
12.9
$567,294 $56,398
$480,795 $52,260
$870,757 $67,501
Employee Overview
Revenue per Account
Producer Info
Between $10,000 and $25,000 % of Book
15.8%
13.8%
15.5%
Staff Service Info
# of Accounts Total Revenue
24.2
26.2
22.0
$353,504 $14,604
$264,980 $10,105
$329,523 $14,978
Technology
Revenue per Account
Insurance Carriers
Between $5,000 and $10,000 % of Book
13.0%
15.5%
11.9%
Appendix
# of Accounts Total Revenue
41.5
44.2
34.6
$281,991
$267,816
$252,694
Revenue per Account
$6,797
$6,059
$7,303
Less than $5,000
% of Book
45.7% 2,081.9
43.0% 1,380.1
31.5% 888.4
# of Accounts Total Revenue
$992,037
$744,394
$667,663
Revenue per Account
$477
$539
$752
(as measured by Comm. & Fees – not premium)
Average
+25% Profit
+25% Growth
Group L&H/Financial Total Commissions & Fees in Book
$545,538
$219,406
$561,978
Greater than $25,000 % of Book
32.7%
25.8%
25.9%
# of Accounts Total Revenue
4.4
2.0
4.1
$199,825 $45,831
$65,927 $32,964
$145,709 $35,323
Revenue per Account
Between $10,000 and $25,000 % of Book
20.3%
19.3%
23.4%
# of Accounts Total Revenue
8.0
3.2
8.9
$119,201 $14,900
$49,386 $15,596
$131,499 $14,817
Revenue per Account
2010 Best Practices Study
Between $5,000 and $10,000 % of Book
16.5%
16.0%
23.2%
# of Accounts Total Revenue
14.7
6.2
18.8
Agencies with Revenues Between $2,500,000 and $5,000,000
$93,220 $6,356
$40,839 $6,623
$130,241
Revenue per Account
$6,946
Less than $5,000
% of Book
30.5% 210.6
39.0% 180.3
27.5% 223.3
# of Accounts Total Revenue
$179,357
$99,821
$154,530
68
Revenue per Account
$852
$554
$692
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