3 / 168
2015 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
3
Analysis of Agencies with Revenues Under $1,250,000
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
2.2%
1.1%
5.7%
Personal P&C
6.4%
12.5%
5.2%
Group Medical
-0.8%
-8.2%
7.1%
All Other Group
31.0%
*
*
Total Organic Growth
5.0%
4.4%
16.2%
PROFIT
Pro Forma Pretax Profit
30.7%
54.9%
28.8%
Pro Forma EBITDA
32.8%
54.9%
29.7%
Rule of 20 Score
22.2
34.4
30.6
FINANCIAL
Average
Top 25%
Current Ratio
1.60:1
2.84:1
Receivable/Payable Ratio
*
*
Accounts Receivables > 60 Days
43.7%
*
Accounts Receivables > 90 Days
2.5%
0.0%
PRODUCTIVITY
Total Agency
Average
Top 25% Profit Top 25% Growth
Revenue per Employee
$131,714
$208,964
$115,212
Compensation per Employee
$63,359
$70,104
$57,420
Spread per Employee
$68,355
$138,861
$57,793
Annual New Commissions Generated per Validated Producer
Average
Top 25%
Commercial P&C
$39,163
$68,333
Personal P&C
$19,604
$35,167
Life & Health/Financial
*
*
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
25.3%
1.6
Personal P&C
28.1%
2.2
Group Life & Health/Financial
38.3%
0.5
*Insufficient Data