2008 Best Practices Study

2008 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

REGIONAL ANALYSIS Agencies with Revenues OVER $5,000,000

Geographic Region:

Northeast

Southeast

Midwest

Southwest

West

% of Agencies in Each Population Size

22.6%

34.4%

17.2%

10.8%

15.1%

Net Revenue Growth (Organic)

4.5%

6.1%

2.6%

4.6%

5.4%

Pre-tax Profit

19.9%

14.6%

15.4%

13.5%

19.2%

Pro Forma Pre-tax Profit

22.9%

20.2%

18.9%

22.9%

21.7%

Profitability as % of Net Revenues

Operating Pre-tax Profit

3.8%

5.5%

3.0%

0.9%

8.0%

EBITDA

24.6%

17.1%

18.7%

15.2%

22.3%

Pro Forma EBITDA

26.6%

22.7%

22.3%

24.6%

24.8%

“Rule of 20” Score

19.0

17.4

13.8

16.9

17.8

Revenue per Employee

$179,107

$167,519

$164,277

$195,755

$179,316

Productivity

Compensation per Employee

$105,494

$110,261

$108,455

$136,169

$108,942

Spread per Employee

$73,607

$57,258

$55,823

$59,586

$70,374

Commercial P&C Producers

$185,527

$255,527

$227,841

$253,829

$246,544

Personal P&C Producers

$62,443

$86,931

$76,037

*

*

Pay Levels for Producer

Life & Health Producers

$185,385

$234,116

$271,856

$217,749

$220,086

Multiline Producers

$196,493

$206,072

*

$170,591

$141,968

Commercial P&C CSRs

$56,182

$49,807

$52,702

$54,970

$56,453

Personal P&C CSRs

$44,793

$40,369

$49,860

$42,107

$44,654

Pay Levels for CSRs

Life & Health CSRs

$50,486

$50,916

$40,847

$47,453

$56,642

Multiline CSRs

*

*

*

*

*

PL - National

8.9

10.5

6.9

8.4

7.9

PL - Regional

7.7

6.1

6.2

5.3

5.3

Number of Carriers

CL - National

26.0

34.7

17.1

18.5

34.2

CL - Regional

13.7

20.1

34.3

12.6

28.8

EB - All

43.9

50.8

48.7

54.4

52.1

Total PL Comms Placed

26.2%

26.8%

7.8%

*

38.6%

Service Center Use

Total CL Comms Placed

7.5%

2.9%

0.9%

0.8%

3.0%

% of Agencies Making an Acquisition in the last 12 Mths

33.3%

34.4%

18.8%

20.0%

35.7%

*Insufficient Data

124

2008 Best Practices Study | Appendix