107 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
107
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Note: See page 163 for an explanation of column headings
Average
Top 25% Profit
Top 25% Growth
ORGANIC GROWTH BY LINE OF BUSINESS (excludes any acquired revenue)
Commercial P&C
9.1%
12.5%
21.0%
Personal P&C
4.6%
8.9%
10.0%
Group Medical
4.3%
13.7%
12.5%
All Other Group
7.9%
-7.9%
6.7%
Total Organic Growth
9.5%
14.8%
20.2%
PROFIT
Pro Forma Pretax Profit
20.2%
30.1%
20.9%
Pro Forma EBITDA
23.0%
31.1%
22.9%
Rule of 20 Score
19.6
30.1
27.5
FINANCIAL
Average
Top 25%
Current Ratio
1.37:1
2.11:1
Receivable/Payable Ratio
40.1%
7.9%
Accounts Receivables > 60 Days
10.4%
0.7%
Accounts Receivables > 90 Days
4.0%
-7.0%
PRODUCTIVITY
Total Agency
Average
Top 25% Profit Top 25% Growth
Revenue per Employee
$184,830
$228,030
$175,416
Compensation per Employee
$116,042
$132,524
$105,326
Spread per Employee
$68,787
$95,506
$70,090
Annual New Commissions Generated per Validated Producer
Average
Top 25%
Commercial P&C
$87,288
$176,231
Personal P&C
$42,672
$70,128
Life & Health/Financial
$116,289
$233,289
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
18.6%
26.6
Personal P&C
26.8%
11.8
Group Life & Health/Financial
15.8%
9.5