29 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
29
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
8.9%
7.4%
8.8%
Personal P&C
3.0%
1.4%
17.4%
Group Medical
1.4%
-9.8%
*
All Other Group
-12.6%
-17.2%
*
Total Organic Growth
9.7%
4.2%
24.1%
PROFIT
Pro Forma Pretax Profit
23.4%
37.9%
17.3%
Pro Forma EBITDA
26.9%
38.7%
19.8%
Rule of 20 Score
22.1
23.5
30.5
FINANCIAL
Average
Top 25%
Current Ratio
1.68:1
3.18:1
Receivable/Payable Ratio
21.8%
-25.8%
Accounts Receivables > 60 Days
12.7%
1.6%
Accounts Receivables > 90 Days
5.4%
0.0%
PRODUCTIVITY
Total Agency
Average
Top 25% Profit Top 25% Growth
Revenue per Employee
$142,005
$182,670
$119,025
Compensation per Employee
$79,898
$92,350
$69,240
Spread per Employee
$62,107
$90,320
$49,785
Annual New Commissions Generated per Validated Producer
Average
Top 25%
Commercial P&C
$51,783
$87,724
Personal P&C
$28,939
$54,934
Life & Health/Financial
$47,590
$95,335
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
18.2%
3.4
Personal P&C
21.5%
2.8
Group Life & Health/Financial
15.9%
0.7
*Insufficient Data