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AGENCY CHARACTERISTICS
Less than
50,000-
250,000-
Over
50,000
250,000
1,000,000
1,000,000
% of Agencies Located in Each
Population Size
10.7%
20.2%
33.3%
35.7%
Net Revenue Growth
16.8%
13.1%
23.2%
16.1%
Profitability as % of Net Revenues
Pre-tax
18.6%
9.5%
11.0%
12.6%
Pro Forma Pre-tax
23.6%
15.9%
20.0%
18.1%
Operating Pre-tax
7.6%
4.5%
2.5%
5.7%
Productivity
Revenue per Employee
$134,518
$131,690
$143,779
$137,343
Compensation per Employee
$77,856
$84,024
$98,707
$90,393
Spread per Employee
$56,662
$47,666
$45,073
$46,950
Pay Levels for Producers
Commercial P&C Producers
$148,552
$168,206
$162,354
$173,721
Personal P&C Producers
$35,998
$46,758
$60,709
$99,013
Life & Health Producers
$145,913
$113,144
$212,769
$150,662
Multiline Producers
*
$114,396
$142,177
$135,713
Pay Levels for CSRs
Commercial P&C CSRs
$40,480
$38,090
$41,427
$45,753
Personal P&C CSRs
$32,624
$31,318
$34,277
$37,303
Life & Health CSRs
$34,786
$40,468
$39,372
$44,919
Multiline Producers
*
*
*
*
Number of Carriers
PL - National
9.7
7.3
5.9
6.7
PL - Regional
6.4
4.6
2.8
3.5
CL - National
24.6
17.6
19.3
22.6
CL - Regional
8.6
20.2
9.4
24.1
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
*
1.1%
2.5%
17.6%
Total Comm'l Lines Commission
placed in Carrier Service Center
*
0.8%
1.5%
3.0%
* - Insufficient Data
SPECIAL POPULATION DENSITY ANALYSIS
Agencies with Revenues Greater Than $2,500,000
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.
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
Page 10
2003 Best Practices Study