81 / 168
2015 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
81
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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
5.7%
6.6%
11.2%
Personal P&C
4.4%
2.2%
6.4%
Group Medical
-1.6%
-1.5%
-0.5%
All Other Group
14.2%
6.1%
18.9%
Total Organic Growth
7.1%
5.7%
14.8%
PROFIT
Pro Forma Pretax Profit
22.7%
35.6%
25.3%
Pro Forma EBITDA
25.2%
37.9%
26.5%
Rule of 20 Score
18.0
25.4
22.7
FINANCIAL
Average
Top 25%
Current Ratio
1.37:1
2.06:1
Receivable/Payable Ratio
42.4%
8.3%
Accounts Receivables > 60 Days
12.7%
0.6%
Accounts Receivables > 90 Days
1.9%
-14.8%
PRODUCTIVITY
Total Agency
Average
Top 25% Profit Top 25% Growth
Revenue per Employee
$170,743
$209,600
$174,715
Compensation per Employee
$105,991
$123,659
$103,572
Spread per Employee
$64,752
$85,940
$71,143
Annual New Commissions Generated per Validated Producer
Average
Top 25%
Commercial P&C
$80,181
$163,040
Personal P&C
$41,189
$73,213
Life & Health/Financial
$70,205
$126,622
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
22.5%
13.6
Personal P&C
24.1%
9.1
Group Life & Health/Financial
17.9%
3.1