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2010 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
122
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Key Benchmarks at a Glance
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business*
Commercial P&C
0.7%
5.3%
9.7%
Personal P&C
4.4%
1.4%
7.9%
Group Medical
-3.7%
-4.1%
1.5%
All Other Group
-4.6%
-15.4%
11.2%
Total Organic Growth
1.8%
3.4%
8.3%
Profit
Pro Forma Pretax Profit
15.6%
27.7%
17.6%
Pro Forma EBITDA
19.6%
30.4%
22.9%
Rule of 20 Score
10.5
16.3
20.1
Financial
Average
Top 25%
Current Ratio
1.30:1
1.95:1
Receivable/Payable Ratio
41.3%
-2.2%
Accounts Receivables > 60 Days
15.6%
3.8%
Accounts Receivables > 90 Days
5.7%
1.3%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$171,761
$202,370
$192,834
Compensation per Employee
$114,034
$118,846
$121,914
Spread per Employee
$57,727
$83,524
$70,920
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$89,256
$147,183
Personal P&C
$53,794
$79,956
Life & Health/Financial
$136,243
$257,513
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$338,968
$558,100
Personal P&C
$206,185
$481,197
Life & Health/Financial
$362,060
$371,004
*Excludes any acquired revenue