161 / 168
161
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
Regional Analysis
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
8.4% 14.1% 14.1% 7.9% 5.2%
Net Revenue Growth (Organic)
5.4% 8.8% 7.3% 10.6% 11.2%
Profitability as %
of Net Revenues
Pre-tax Profit
21.5% 15.8% 27.4% 22.7% 28.6%
Pro Forma Pre-tax Profit
28.6% 19.5% 30.4% 29.0% 31.2%
Operating Pre-tax Profit
10.9% 7.9% 20.8% 14.6% 24.3%
EBITDA
24.9% 19.3% 30.1% 24.8% 30.6%
Pro Forma EBITDA
32.0% 23.1% 33.1% 31.1% 33.2%
Value Creation “Rule of 20” Score
18.8
19.1
24.8
28.2
28.4
Productivity
Revenue per Employee
$146,054 $144,732 $150,692 $176,596 $135,455
Compensation per Employee $81,012 $88,913 $75,339 $91,315 $69,306
Spread per Employee
$65,042 $55,819 $75,354 $85,282 $66,149
Pay Levels for
Producers
Commercial P&C
$100,111 $148,666 $90,289 $121,260 $103,459
Personal P&C
$67,036 $51,318 $50,261
*
$53,000
Group Life & Health /
Financial
$48,535 $125,812 $74,901 $76,923 $101,000
Multi-Line
$104,427 $109,973 $103,410 $175,071
*
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
3.6
5.4
3.8
7.0
4.2
Personal P&C
5.1
3.5
3.7
3.9
1.7
Group Life & Health /
Financial
1.0
1.6
1.1
0.8
1.1
Multi-Line
*
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
29.3% 18.9% 14.2% 15.8% 20.0%
Personal P&C
24.5% 24.7% 20.5% 26.0% 24.2%
Group Life & Health /
Financial
15.3% 24.6% 12.5% 10.7% 29.1%
Multi-Line
*
*
*
*
*
Number of
Carriers
Personal P&C
10.4
15.1
11.0
15.1
10.2
Commercial P&C
10.7
22.9
15.3
25.3
15.7
Group Life & Health /
Financial
7.6
9.6
10.4
23.7
11.2
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
52.2% 9.6%
*
*
*
Total CL Comms Placed
(as % of CL Revenues)
2.1% 2.3%
*
*
*
% of Agencies Making an Acquisition
in the last 12 Months
6.3% 3.7% 7.4% 6.7% 10.0%
*Insufficient Data