55 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
55
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
10.6%
10.4%
23.2%
Personal P&C
6.0%
8.7%
8.8%
Group Medical
2.7%
-5.4%
-3.4%
All Other Group
-5.1%
-16.2%
-23.8%
Total Organic Growth
9.1%
10.9%
21.9%
PROFIT
Pro Forma Pretax Profit
26.7%
42.9%
26.6%
Pro Forma EBITDA
29.8%
46.3%
28.5%
Rule of 20 Score
24.1
32.6
34.4
FINANCIAL
Average
Top 25%
Current Ratio
1.35:1
2.20:1
Receivable/Payable Ratio
27.2%
-16.1%
Accounts Receivables > 60 Days
20.9%
2.5%
Accounts Receivables > 90 Days
7.6%
-5.0%
PRODUCTIVITY
Total Agency
Average
Top 25% Profit Top 25% Growth
Revenue per Employee
$164,362
$191,159
$182,155
Compensation per Employee
$92,343
$89,067
$101,359
Spread per Employee
$72,020
$102,092
$80,796
Annual New Commissions Generated per Validated Producer
Average
Top 25%
Commercial P&C
$57,847
$95,862
Personal P&C
$50,288
$91,644
Life & Health/Financial
$54,623
$107,995
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
16.7%
6.9
Personal P&C
22.7%
5.0
Group Life & Health/Financial
15.3%
1.7