2000 Best Practices Study

Population Density Analysis – Agencies with Revenues Less Than $1.25M The population density analysis provides another valuable picture of the operating characteristics of the agencies included in the Best Practices Study Executive Update. In general, a comparison among agencies of a similar size is the best comparison basis, but an evaluation based on community size can prove helpful when an agency is atypical in nature, such as a larger revenue agency in a smaller community. As always, consider these data in light of the results achieved by agencies of a similar revenue size to gain the best understanding of Best Practices agencies. Less than 50,000- 250,000- Over 50,000 250,000 1,000,000 1,000,000 % of Agencies Located in Each Population Size 70.5% 18.2% 6.8% 4.5% Net Revenue Growth 4.0% -5.6% -0.2% * Profitability as % of Net Revenues Pre-tax 13.1% 1.3% 19.3% * Pro Forma Pre-tax 18.1% 17.2% 20.2% * Operating Pre-tax 2.0% 3.2% 14.4% * Productivity Revenue per Employee 89,481 $ 80,906 $ 116,856 $ * Compensation per Employee 49,668 $ 51,470 $ 52,400 $ * Spread per Employee 39,814 $ 29,436 $ 64,456 $ * Pay Levels for Producers Commercial P&C Producers 54,088 $ 48,100 $ * * Personal P&C Producers 34,803 $ * * * Life & Health Producers 39,861 $ * * * Multiline Producers 54,039 $ 65,894 $ * * Pay Levels for CSRs Commercial P&C CSRs 29,738 $ 39,181 $ * * Personal P&C CSRs 24,039 $ * * * Life & Health CSRs 14,107 $ * * * Multiline Producers 29,635 $ 65,894 $ * * Number of Carriers PL - National 2.7 5.5 3.3 * PL - Regional 3.8 3.0 5.3 * CL - National 3.0 8.5 2.7 * CL - Regional 3.0 3.8 3.3 * * - Insufficient Data

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Population Density Analysis – Agencies with Revenues Less Than $1.25M