2011 Best Practices Study

2011 Best Practices Study

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Regional Analysis Agencies with Revenues OVER $5,000,000

Geographic Region:

Northeast Southeast Midwest Southwest

West

% of Agencies Located in Each Region

12.6% 11.1% 9.2% 7.2% 7.2%

Net Revenue Growth (Organic)

1.2% 1.2% 4.7% -0.8% -0.6%

Pre-tax Profit

14.6% 14.2% 10.3% 13.0% 12.0%

Pro Forma Pre-tax Profit

18.6% 17.3% 13.0% 17.9% 13.9%

Profitability as % of Net Revenues

Operating Pre-tax Profit

2.9% 5.8% 0.2% 3.7% 3.6%

EBITDA

20.4% 16.9% 14.5% 14.8% 14.6%

Pro Forma EBITDA

24.4% 20.0% 17.2% 19.8% 16.5%

Value Creation “Rule of 20” Score

13.4

11.2

13.3

9.1

7.7

Revenue per Employee $172,513 $160,353 $169,121 $167,774 $180,562 Compensation per Employee $105,209 $106,388 $117,336 $114,155 $121,835 Spread per Employee $67,304 $53,965 $51,785 $53,619 $58,727

Productivity

Commercial P&C 

$178,466 $220,853 $218,154 $194,232 $200,031

Personal P&C 

*

$91,986 $68,410 $98,645 $123,413

Pay Levels for Producers

Life & Health / Financial

$204,745 $232,116 $215,353 $225,714 $199,744

Multiline

$117,281 $263,786 $318,838 $239,056 $223,416

Commercial P&C 

$54,117 $48,440 $50,016 $53,565 $58,462

Pay Levels for Service / Sales Support Staff

Personal P&C 

$42,316 $40,531 $43,359 $44,246 $50,339

Life & Health / Financial

$55,921 $48,235 $49,256 $50,414 $58,606

Multiline

*

*

*

*

*

Commercial P&C

$82,476 $87,707 $91,391 $71,648 $106,675

Pay Levels for Account Execs

Personal Lines

$65,798 $60,290 $58,839

*

$73,114

Life & Health / Financial

$78,420 $85,400 $89,794 $65,121 $111,610

PL - National

8.1

10.1

7.2

11.5

14.1

PL - Regional

7.9

10.8

10.6

3.9

4.0

Number of Carriers

CL - National

17.2

33.2

17.5

45.0

52.7

CL - Regional

13.1

24.5

30.6

14.9

15.3

EB - All

38.4

54.5

54.3

30.9

68.9

Total PL Comms Placed

26.0% 17.0% 25.8% 24.6% 20.5%

2011 Best Practices Study

Service Center Use

Total CL Comms Placed

4.8% 2.0% 1.2% 3.6% 2.0%

% of Agencies Making an Acquisition in the last 12 Months

30.8% 8.7% 10.5% 13.3% 20.0%

149

*Insufficient Data