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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Revenues/Expenses
Agencies with Revenues Over $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Services/Other Products Provided (as % of Agencies Providing)
Average
+25% Profit
+25% Growth
Loss Control/Engineering
95.7%
80.0%
100.0%
Worker’s Comp Claims Adjusting/Admin (TPA)
47.8%
20.0%
83.3%
Group Health Insurance Claims Adjusting/Admin (TPA)
34.8%
20.0%
66.7%
Self Insurance Programs
73.9%
80.0%
83.3%
Risk Management Consulting
87.0%
80.0%
83.3%
Premium Financing (in-house vs. 3rd party)
34.8%
20.0%
50.0%
Pension/Profit Sharing/401K
69.6%
60.0%
83.3%
Human Resource Consulting
30.4%
20.0%
50.0%
Employee Leasing Products & Services (PEOs)
4.3%
0.0%
0.0%
Investment Products (Securities, Stocks)
39.1%
60.0%
50.0%
Other*
17.4%
20.0%
0.0%
“With the acquisition appetites of public brokers, banks and now
private-equity firms, it is getting harder and harder to grow by
acquisitions.”
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$1,400,764
Average
1.43x
High
$7,000,000
High
2.00x
Low
$41,105
Low
1.00x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
52.0%
$2,479,402
4.3%
*Includes P&C loss adjusting, HR website, pool administration, paralegal and legal, MyWave, background checks, wellness, and
management consulting