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AGENCY CHARACTERISTICS
operating characteristics of the Best Practice agencies.
NE
SE
MW SW
W
Growth
Net Revenue Growth
12.3% 15.8% 14.5% 8.6% 17.7%
Profitability as % of Net Revenues
Pre-tax
12.4% 9.0% 12.8% 13.4% 11.4%
Pro Forma Pre-tax
20.1% 16.4% 17.8% 18.5% 17.9%
Operating Pre-tax
-0.5% -0.2% 3.7% 2.7% 2.7%
Productivity
Revenue per Employee
$121,409 $120,392 $113,547 $113,121 $128,213
Compensation per Employee
$73,956 $80,072 $73,977 $70,717 $83,935
Spread per Employee
(1)
$47,453 $40,320 $39,570 $42,404 $44,278
Pay Levels for Producers
Commercial P&C Producers
$102,429 $153,206 $131,414 $99,499 $145,306
Personal P&C Producers
$66,214 $60,063 $65,059 $41,724 $79,188
Life & Health Producers
$104,484 $161,878 $112,393 $131,926 $152,850
Multiline Producers
$72,894 $105,130 $128,742 $102,056 $108,887
Pay Levels for CSRs
Commercial P&C CSRs
$51,719 $36,803 $34,862 $36,530 $43,946
Personal P&C CSRs
$31,994 $30,071 $28,160 $29,719 $36,891
Life & Health CSRs
$34,269 $32,996 $32,515 $44,477 $40,737
Multiline CSRs
*
*
*
*
*
Number of Carriers
PL - National
7.7
5.1
4.8
7.8
7.4
PL - Regional
5.2
3.5
3.4
2.7
2.2
CL - National
18.6
18.8
14.0
21.9
13.9
CL - Regional
12.3
12.8
14.6
4.1
23.3
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
27.2% 5.1% 2.9% 10.2% 18.1%
Total Comm'l Lines Commission
placed in Carrier Service Center
7.6% 1.2% 0.6% 2.6% 2.5%
% of Agencies Making
Acquisition in Last 12 Months
32.0% 19.4% 24.0% 16.7% 16.7%
* - Insufficient Data
(1)
Total revenue per employee minus compensation per employee. While revenue per employee
has been a standard productivity measure, the "spread" measures the dollars per employee available
to pay all other agency expenses and generate a profit for the agency.
SPECIAL REGIONAL ANALYSIS
Agencies with Revenues Greater Than $1,250,000
in conjunction with results by revenue group to gain the most complete understanding of the
The regional analysis provides another perspective for understanding the Best Practices data
in their proper context. However, characteristics regarded as unique to agencies in a certain
part of the country or any regional factors influencing agency operations are best considered
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