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2015 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
2015 Best
Practices Study
Population Density
Agencies with Revenues UNDER $5,000,000
Population Where Home Office is Located:
Less than
50,000
50,000 to
250,000
250,000 to
1,000,000
Over
1,000,000
% of Agencies Located in Each Population
19.5% 12.8%
6.7%
9.7%
Net Revenue Growth (Organic)
8.5%
6.5%
10.1%
9.3%
Profitability as %
of Net Revenues
Pre-tax Profit
24.5% 21.7% 19.6% 21.4%
Pro Forma Pre-tax Profit
29.2% 25.2% 24.9% 25.6%
Operating Pre-tax Profit
16.8% 14.5%
9.9%
14.9%
EBITDA
27.4% 24.5% 23.6% 23.6%
Pro Forma EBITDA
32.1% 28.0% 29.3% 27.8%
Value Creation “Rule of 20” Score
24.0
21.5
21.3
24.4
Productivity
Revenue per Employee
$140,646
$157,247
$160,027
$154,956
Compensation per Employee
$71,448
$86,335
$90,210
$91,923
Spread per Employee
$69,198
$70,912
$69,817
$63,033
Pay Levels for
Producers
Commercial P&C
$80,429
$144,615
$92,395
$152,071
Personal P&C
$49,795
$60,967
*
$76,271
Group Life & Health / Financial
$87,327
$84,843
$74,871
$123,606
Multi-Line
$108,497
$120,697
$171,769
$103,739
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
3.7
5.7
5.0
5.6
Personal P&C
4.1
3.3
3.3
3.8
Group Life & Health
1.3
1.2
0.9
1.5
Multi-Line
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
19.2% 20.6% 15.5% 19.0%
Personal P&C
24.6% 24.4% 20.9% 22.9%
Group Life & Health / Financial
19.9% 14.9% 19.4% 24.0%
Multi-Line
*
*
*
*
Number of
Carriers
Personal P&C
11.8
10.6
17.4
13.3
Commercial P&C
12.0
21.4
26.2
21.9
Group Life & Health / Financial
8.5
13.4
17.5
11.4
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
34.9% 32.1%
*
18.9%
Total CL Comms Placed
(as % of CL Revenues)
6.1%
2.2%
*
15.2%
% of Agencies Making an Acquisition
in the last 12 Months
2.6%
4.0%
7.7%
15.8%
*Insufficient Data