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2015 Best
Practices Study
160
2015 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Population Density
Agencies with Revenues OVER $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
8.2%
9.7%
14.4% 19.0%
Net Revenue Growth (Organic)
6.2%
7.9%
6.3%
10.5%
Profitability as %
of Net Revenues
Pre-tax Profit
17.8% 23.3% 15.4% 16.9%
Pro Forma Pre-tax Profit
19.9% 20.1% 17.7% 20.3%
Operating Pre-tax Profit
8.0%
9.2%
7.9%
9.2%
EBITDA
21.7% 20.6% 17.7% 19.8%
Pro Forma EBITDA
23.8% 17.4% 19.9% 23.2%
Value Creation “Rule of 20” Score
15.9
17.7
15.3
21.4
Productivity
Revenue per Employee
$164,868
$172,697
$187,720
$201,183
Compensation per Employee
$95,865
$108,105
$121,443
$129,667
Spread per Employee
$69,003
$64,592
$66,278
$71,517
Pay Levels for
Producers
Commercial P&C
$133,564
$224,733
$213,771
$213,132
Personal P&C
$57,469
$64,251
$96,831
$89,579
Group Life & Health / Financial
$150,780
$196,331
$223,534
$199,538
Multi-Line
$105,147
$136,513
$263,344
$206,603
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
21.0
26.3
39.0
26.5
Personal P&C
13.9
6.9
12.5
10.3
Group Life & Health / Financial
5.8
12.0
18.3
12.9
Multi-Line
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
22.5% 20.8% 18.3% 20.6%
Personal P&C
25.8% 24.5% 26.0% 25.9%
Group Life & Health / Financial
17.9% 15.5% 15.0% 18.4%
Multi-Line
*
*
*
*
Number of
Carriers
Personal P&C
26.5
17.9
25.9
25.4
Commercial P&C
49.3
40.6
69.2
54.8
Group Life & Health / Financial
35.1
41.8
65.8
47.0
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
17.0% 20.4% 18.0% 18.3%
Total CL Comms Placed
(as % of CL Revenues)
4.4%
1.8%
5.4%
2.9%
% of Agencies Making an Acquisition
in the last 12 Months
12.5% 15.8% 25.0% 35.1%
*Insufficient Data