8 / 97
AGENCY CHARACTERISTICS
operating characteristics of the Best Practice agencies.
NE
SE
MW SW
W
Growth
Net Revenue Growth
15.3% 19.1% 16.5% 21.7% 18.5%
Profitability as % of Net Revenues
Pre-tax
12.3% 9.9% 14.5% 16.8% 10.3%
Pro Forma Pre-tax
19.4% 17.9% 19.8% 20.3% 18.3%
Operating Pre-tax
5.2% 3.1% 6.7% 10.0% 1.5%
Productivity
Revenue per Employee
$134,644 $140,889 $137,173 $130,340 $142,276
Compensation per Employee
$81,178 $96,096 $90,461 $83,109 $96,151
Spread per Employee
(1)
$53,465 $44,793 $46,713 $47,231 $46,125
Pay Levels for Producers
Commercial P&C Producers
$133,602 $181,445 $165,452 $159,657 $174,489
Personal P&C Producers
$67,524 $64,731 $52,665 $80,292 $57,261
Life & Health Producers
$181,909 $192,869 $128,666 $130,222 $152,628
Multiline Producers
$109,681 $117,951 $174,302
*
$118,655
Pay Levels for CSRs
Commercial P&C CSRs
$42,458 $41,974 $36,808 $41,411 $47,576
Personal P&C CSRs
$34,504 $33,739 $32,174 $32,315 $39,905
Life & Health CSRs
$42,964 $40,789 $37,919 $38,755 $46,270
Multiline CSRs
*
*
*
*
$31,830
Number of Carriers
PL - National
8.7
6.2
5.1
8.3
7.3
PL - Regional
6.0
3.1
3.9
2.5
2.9
CL - National
20.4
17.6
25.4
15.8
23.5
CL - Regional
16.3
15.7
13.2
4.5
29.5
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
27.5% 2.4% 0.6% 17.4% 10.8%
Total Comm'l Lines Commission
placed in Carrier Service Center
6.5% 1.2% 0.7% 1.5% 2.3%
% of Agencies Making
Acquisition in Last 12 Months
27.8% 23.1% 17.6% 25.0% 33.3%
* - 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 Greater Than $2,500,000
in conjunction with results by revenue group to gain the most complete understanding of the
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
Page 8
2003 Best Practices Study