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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
47.8%
24.6%
14.9%
14.5%
Net Revenue Growth
10.2%
15.8%
8.8%
2.0%
Profitability as % of Net Revenues
Pre-tax
14.1%
15.9%
23.3%
10.4%
Pro Forma Pre-tax
21.2%
27.0%
27.7%
20.0%
Operating Pre-tax
5.4%
6.2%
17.5%
1.1%
Productivity
Revenue per Employee
$100,528
$130,732
$113,022
$133,648
Compensation per Employee
$57,143
$82,353
$58,443
$84,570
Spread per Employee
$43,386
$48,379
$54,579
$49,078
Pay Levels for Producers
Commercial P&C Producers
$78,422
$92,895
$113,461
$111,401
Personal P&C Producers
$39,568
$67,566
$87,425
*
Life & Health Producers
$72,833
$169,235
$76,445
*
Multiline Producers
$58,619
$140,551
$59,194
$120,886
Pay Levels for CSRs
Commercial P&C CSRs
$30,525
$37,299
$40,212
$41,551
Personal P&C CSRs
$25,197
$30,611
$32,273
$37,197
Life & Health CSRs
$20,797
$32,365
$27,230
$33,250
Multiline Producers
$26,060
*
$33,000
*
Number of Carriers
PL - National
2.3
2.3
2.9
3.4
PL - Regional
3.8
4.3
4.1
3.0
CL - National
3.2
5.5
2.4
5.9
CL - Regional
4.6
8.1
3.4
4.5
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
*
*
*
*
Total Comm'l Lines Commission
placed in Carrier Service Center
2.5%
1.4%
*
15.1%
* - Insufficient Data
SPECIAL POPULATION DENSITY ANALYSIS
Agencies with Revenues Less 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 5
2003 Best Practices Study