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
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