162 / 168
2015 Best
Practices Study
162
2015 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Regional Analysis
Agencies with Revenues OVER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
10.5% 12.0% 11.0% 9.4% 7.3%
Net Revenue Growth (Organic)
6.2% 6.6% 10.2% 9.1% 9.5%
Profitability as %
of Net Revenues
Pre-tax Profit
16.0% 16.5% 17.2% 19.2% 12.2%
Pro Forma Pre-tax Profit
19.2% 18.5% 17.7% 22.5% 19.3%
Operating Pre-tax Profit
8.2% 9.0% 7.2% 10.7% 5.9%
EBITDA
19.2% 18.9% 19.5% 21.2% 15.8%
Pro Forma EBITDA
22.4% 20.9% 20.1% 24.6% 22.8%
Value Creation “Rule of 20” Score
16.4
16.0
17.2
20.4
21.0
Productivity
Revenue per Employee
$178,668 $175,079 $187,405 $184,003 $211,863
Compensation per Employee $109,037 $113,227 $119,687 $116,141 $141,396
Spread per Employee
$69,631 $61,852 $67,718 $67,861 $70,467
Pay Levels for
Producers
Commercial P&C
$137,769 $215,066 $198,068 $190,843 $228,452
Personal P&C
$63,512 $87,451 $77,573 $76,926 $92,639
Group Life & Health /
Financial
$143,116 $221,685 $167,736 $206,205 $228,815
Multi-Line
$108,127 $220,323 $243,113 $198,376 $206,309
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
30.0
30.3
30.3
22.0
38.9
Personal P&C
14.5
11.7
8.6
12.0
7.2
Group Life & Health /
Financial
8.8
14.8
14.9
5.0
23.8
Multi-Line
*
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
26.0% 20.1% 19.1% 19.9% 16.6%
Personal P&C
25.6% 22.4% 31.2% 25.1% 24.3%
Group Life & Health /
Financial
23.6% 15.4% 14.7% 14.5% 15.5%
Multi-Line
*
*
*
*
*
Number of
Carriers
Personal P&C
21.1
26.0
23.2
26.3
19.3
Commercial P&C
32.7
66.7
57.6
58.2
62.7
Group Life & Health /
Financial
34.7
43.9
57.4
51.5
67.3
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
20.3% 19.2% 14.4% 19.9% 30.1%
Total CL Comms Placed
(as % of CL Revenues)
8.7% 1.7% 2.2% 2.6% 3.1%
% of Agencies Making an Acquisition
in the last 12 Months
5.0% 21.7% 33.3% 38.9% 28.6%
*Insufficient Data