152 / 191
2010 Best
Practices Study
Agencies
with Revenues
Over $25,000,000
152
Analysis of Agencies with Revenues Over $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
-2.1%
1.6%
6.4%
Personal P&C
2.6%
-1.3%
1.1%
Group Medical
1.9%
6.8%
-1.3%
All Other Group
1.7%
10.9%
*
Total Organic Growth
1.5%
2.1%
8.5%
Profit
Pro Forma Pretax Profit
15.5%
24.9%
15.4%
Pro Forma EBITDA
19.8%
27.3%
18.4%
Rule of 20 Score
11.1
16.6
17.3
Financial
Average
Top 25%
Current Ratio
1.37:1
1.96:1
Receivable/Payable Ratio
52.9%
29.9%
Accounts Receivables > 60 Days
11.7%
2.4%
Accounts Receivables > 90 Days
3.5%
0.7%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$183,340
$188,867
$182,913
Compensation per Employee
$119,941
$114,128
$125,168
Spread per Employee
$63,400
$74,739
$57,744
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$116,609
$198,434
Personal P&C
$46,730
$87,262
Life & Health/Financial
$143,662
$248,622
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$357,734
$625,878
Personal P&C
$176,481
$601,183
Life & Health/Financial
$455,516
$677,108
*Insufficient Data
**Excludes any acquired revenue