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AGENCY CHARACTERISTICS
NE
SE
MW SW
W
Growth
Net Revenue Growth
7.5% 10.8% 11.6% 8.3% 16.3%
Profitability as % of Net Revenues
Pre-tax
15.5% 14.0% 15.0% 11.4% 24.7%
Pro Forma Pre-tax
22.1% 24.6% 20.9% 20.8% 34.5%
Operating Pre-tax
5.0% 4.8% 10.9% 5.1% 4.3%
Productivity
Revenue per Employee
$112,412 $110,618 $109,762 $136,168 $104,591
Compensation per Employee
$67,442 $69,438 $62,428 $83,458 $49,618
Spread per Employee
(1)
$44,970 $41,181 $47,334 $52,710 $54,973
Pay Levels for Producers
Commercial P&C Producers
$83,974 $98,640 $104,163 $92,100 $66,375
Personal P&C Producers
*
$52,071 $67,384 $37,216
*
Life & Health Producers
$94,045 $108,129 $73,213
*
*
Multiline Producers
$103,164 $113,081 $69,828 $77,595
*
Pay Levels for CSRs
Commercial P&C CSRs
$37,907 $36,896 $29,670 $31,169 $44,563
Personal P&C CSRs
$32,971 $29,241 $24,923 $23,920 $34,600
Life & Health CSRs
$33,703 $26,667 $18,340 $22,499
*
Multiline CSRs
$35,230 $30,547 $22,355
*
*
Number of Carriers
PL - National
2.8
3.4
1.3
2.9
3.0
PL - Regional
4.6
3.5
4.4
3.0
2.3
CL - National
2.8
4.4
1.9
9.1
4.3
CL - Regional
4.4
5.0
5.4
8.3
3.0
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
*
7.7%
*
*
*
Total Comm'l Lines Commission
placed in Carrier Service Center
*
6.9%
*
1.9%
*
% of Agencies Making
Acquisition in Last 12 Months
0.0% 6.7% 5.3% 9.1% 16.7%
* - 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.
SPECIAL REGIONAL ANALYSIS
Agencies with Revenues Less Than $2,500,000
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 Practice agencies.
Page 3
2003 Best Practices Study