2000 Best Practices Study

Regional Analysis – Agencies with Revenues Greater Than $1.25M The regional analysis provides another perspective for understanding the Best Practices data in their proper context. However, characteristics regarded as unique to agencies in a certain part of the country or any regional factors influencing agency operations are best considered in conjunction with results by revenue group to gain the most complete understanding of the operating characteristics of the Best Practices Agencies.

NE

SE

MW SW W

Growth Net Revenue Growth

5.0%

14.5%

9.5%

8.9%

6.3%

Profitability as % of Net Revenues Pre-tax

8.8%

12.1% 17.7%

14.0% 17.9%

7.7%

7.6%

15.9% -2.4%

13.8% -2.6%

12.8% -1.3%

Pro Forma Pre-tax Operating Pre-tax

2.2%

5.0%

Productivity Revenue per Employee

$107,474 $67,350 $40,124 $90,587 $47,239 $99,583 $49,141 $37,362 $30,589 $32,292

$116,827 $74,833 $41,995 $144,622 $53,640 $134,556 $145,649 $34,131 $27,984 $31,488

$112,330 $72,401 $39,928 $134,695 $59,646 $112,299 $104,284 $33,975 $28,925 $32,499

$110,854 $77,545 $33,309 $109,215 $63,198 $134,363 $119,122 $36,759 $29,395 $30,140

$101,531 $66,261 $35,270 $128,220 $93,384 $148,518 $95,351 $34,992 $30,675 $36,035

Compensation per Employee

Spread per Employee (1)

Pay Levels for Producers Commercial P&C Producers Personal P&C Producers

Life & Health Producers

Multiline Producers

Pay Levels for CSRs Commercial P&C CSRs

Personal P&C CSRs Life & Health CSRs

*

*

*

*

*

Multiline CSRs

Number of Carriers PL - National

6.5 5.5

4.5 2.3

4.7 4.8

5.8 2.3

6.7 1.1

PL - Regional CL - National CL - Regional

10.1 14.0

12.2

14.1 10.6

13.9

29.3

9.3

3.4

4.1

* Insufficient data (1) Total revenue per employee minus compensation per employee. While revenue per employee has been a standard productivity measure, the “spread” measures the dollars per employee available to pay all other agency expenses and generate a profit for the agency.

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Regional Analysis – Agencies with Revenues Greater Than $1.25M