2010 Best Practices Study
Analysis of Agencies with Revenues Under $1,250,000
Revenue by Aquisition
Mgmt. Perspectives
Profile
Acquired Revenues
Revenues
Average Commissions Acquired
% of Agencies Acquiring
Percentage of Net Revenues
Expenses
Profitability
Acquisitions Made in Last 12 Months
5.0%
$28,923
7.5%
Employee Overview
Producer Info
What the Typical Transactions Looked Like Revenues Acquired per Transaction
Multiples of Revenue Paid
Staff Service Info
Average
* * *
Average
* * *
Technology
High Low
High Low
Insurance Carriers
*Insufficient Data
Appendix
Revenue by Account Concentration Average
+25% Profit
+25% Growth
% of Revenue Derived from: Largest Account
3.8%
3.0%
3.0%
High Low
13.5%
1.1%
10 Largest Accounts
13.1% 33.6%
10.9%
12.6%
High Low
2.6%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source) Life
63.9%
80.5%
50.0%
Disability
2.0%
1.0% 0.5% 0.5% 0.0%
0.0% 0.0% 0.0%
Dental & Vision
11.7%
Retirement/Pension
0.1% 9.1% 2.2% 0.1%
Worksite/Voluntary/Supplement
25.0%
Long-Term Care
12.0%
0.0% 0.0%
2010 Best Practices Study
Employee Benefits TPA
0.5% 5.0%
All Other
10.9%
25.0%
*Excludes Group Medical
Agencies with Revenues Under $1,250,000
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