2015 Best Practices Study

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2015 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
61
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
Revenue Growth by Source
*Insufficient Data
Average Top 25% Profit Top 25% Growth
Commercial P&C
Renewal Revenues1 97.7% 100.2% 108.9%
New Business2 12.9% 10.2% 14.3%
Acquired Revenues3 0.7% 0.4% 0.6%
Organic Growth4 10.6% 10.4% 23.2%
Total Growth5 11.3% 10.8% 23.8%
Bonds P&C
Renewal Revenues1 72.2% 74.6% 66.5%
New Business2 24.7% 26.4% 24.5%
Acquired Revenues3 0.4% 1.8% 0.0%
Organic Growth4 -3.1% 1.0% -8.9%
Total Growth5 -2.8% 2.8% -8.9%
Personal P&C
Renewal Revenues1 94.6% 95.6% 97.1%
New Business2 11.4% 13.1% 11.8%
Acquired Revenues3 0.9% 1.0% 0.2%
Organic Growth4 6.0% 8.7% 8.8%
Total Growth5 6.9% 9.7% 9.0%
Value Added Services P&C
Renewal Revenues1 85.2% 71.0% 62.9%
New Business2 3.3% 11.3% 11.4%
Acquired Revenues3 0.0% 0.0% 0.0%
Organic Growth4 -11.5% -17.8% -25.7%
Total Growth5 -11.5% -17.8% -25.7%
1 Renewal Revenues are
presented as a % of prior year’s
total revenues for this line of
business. This figure is impacted
by attrition (loss or retention
of accounts) and by changes in
premium and commission levels.
The higher the %, the more
favorable the results.
2 New Business is presented as a
% of prior year’s total revenues
for this line of business. The
higher the %, the more favorable
the results.
3 Acquired Revenuesare
presented as a % of prior year’s
total revenues for this line
of business. The % indicates
the significance of acquired
business.
4 Organic Growth represents
growth in revenues from
prior year excluding acquired
revenues.
5 Total Growth represents growth
in revenues from prior year
including acquired revenues.