96 / 97
Glossary
Average Annual Pay per CSR:
Average Compensation appearing on the CSR’s W-2 forms. This does not include other
employee benefits expense. Pay per CSR is computed separately for Commercial P&C,
Personal P&C, Life & Health and Multi-Line CSR’s.
Average Annual Pay per Producer:
Average Compensation appearing on the validated producer’s W-2 that resulted from the
producer’s production responsibilities
only
. This does not include other employee benefits
expense or payroll compensation earned for management duties, profit distributions to owners,
etc.
Brokerage Commission Expense:
Commissions paid to other agencies or brokers. Excludes in-house producers compensated on
a 1099 who are included in Total Payroll Expense.
Comparison Group:
The
Best Practices
firms in the same revenue category or the firms in the same affinity group
against which your agency’s results are being compared.
Comparison Group, +25% Growth:
The average results achieved by the 25% fastest growing firms in your
Best Practices
revenue
category or affinity group for that factor. (The firms comprising this group are the same for
every factor or line item.)
Comparison Group, +25% Profit:
The average results achieved by the 25% most profitable firms in your
Best Practices
revenue
category or affinity group for that factor. (The firms comprising this group are the same for
every factor or line item.)
Comparison Group, Top 25%:
The average results achieved by the Top 25% of the firms in the group for that particular factor
or line item. (The firms comprising this group will be different for each factor or line item.)
Compensation Per Employee:
Total compensation expense (total payroll and total benefits expense) divided by total number of
“full-time equivalent” employees.
Current Ratio:
Current assets divided by current liabilities. When the current ratio is greater than1:1, it
indicates that cash and assets with short-term maturities are greater than the firm’s short-term
obligations. However, the timing of collections from customers and payments to companies can
still impact the ability of an agency to meet obligations.
Operating Pre-Tax Profit:
Pre-tax profit minus contingents, bonus, and investment income.
Page
96
2003 Best Practices Study