2000 Best Practices Study

Population Density Analysis – Agencies with Revenues Greater 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 Profitability as % of Net Revenues Pre-tax Net Revenue Growth

24.7% 22.5% 24.7% 28.1% 8.4% 11.7% 11.0% 6.6% 9.7% 11.2% 12.1% 8.5% 15.8% 19.3% 18.0% 11.6% -1.3% 0.2% 1.8% 0.4%

Pro Forma Pre-tax Operating Pre-tax

Productivity

107,507 $

99,839 $ 65,382 $ 34,457 $ 113,895 $ 47,164 $ 106,240 $ 92,668 $ 31,533 $ 25,514 $ 27,773 $

116,278 $ 74,421 $ 41,857 $ 115,720 $ 63,927 $ 135,427 $ 97,344 $ 36,563 $ 29,481 $ 30,605 $

117,396 $ 76,422 $ 40,974 $ 137,549 $ 115,818 $ 130,537 $ 150,975 $ 39,373 $ 32,799 $ 37,166 $

Revenue per Employee Compensation per Employee Pay Levels for Producers Commercial P&C Producers Personal P&C Producers Spread per Employee

$ $

69,123 38,384

113,459 $

$

30,009

121,091 $

Life & Health Producers Multiline Producers Commercial P&C CSRs Personal P&C CSRs Life & Health CSRs

$

70,030

Pay Levels for CSRs

$ $ $

33,829 28,973 31,243

27,759 $

*

*

*

Multiline CSR's

Number of Carriers PL - National

6.5 4.0

5.0 4.7

5.0 3.5

6.0 1.8

PL - Regional CL - National CL - Regional

10.2

10.4

12.0

24.8 14.3

5.3

8.6

8.6

* - Insufficient Data

17 of 113

Population Density Analysis – Agencies with Revenues greater than $1.25M