133 / 168
2015 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
133
Analysis of Agencies with Revenues Over $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
8.2%
4.2%
16.8%
Personal P&C
2.4%
5.9%
3.2%
Group Medical
5.6%
4.4%
5.2%
All Other Group
3.8%
16.3%
-8.0%
Total Organic Growth
7.6%
6.1%
14.7%
PROFIT
Pro Forma Pretax Profit
14.3%
23.9%
15.8%
Pro Forma EBITDA
17.6%
25.9%
18.5%
Rule of 20 Score
15.9
18.2
23.5
FINANCIAL
Average
Top 25%
Current Ratio
1.31:1
1.75:1
Receivable/Payable Ratio
48.6%
15.9%
Accounts Receivables > 60 Days
6.5%
1.0%
Accounts Receivables > 90 Days
7.4%
-3.5%
PRODUCTIVITY
Total Agency
Average
Top 25% Profit Top 25% Growth
Revenue per Employee
$207,660
$206,793
$223,743
Compensation per Employee
$136,627
$122,262
$157,721
Spread per Employee
$68,764
$74,974
$66,023
Annual New Commissions Generated per Validated Producer
Average
Top 25%
Commercial P&C
$120,434
$215,771
Personal P&C
$50,165
$86,923
Life & Health/Financial
$153,924
$266,743
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
19.7%
87.8
Personal P&C
26.6%
12.3
Group Life & Health/Financial
16.4%
33.2