157 / 191
2010 Best
Practices Study
Agencies
with Revenues
Over $25,000,000
157
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
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.2%
6.2%
2.6%
High
20.6%
Low
1.1%
10 Largest Accounts
9.5%
9.5%
10.6%
High
18.7%
Low
5.2%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
16.1%
28.5%
14.8%
Disability
12.9%
22.4%
11.3%
Dental & Vision
18.2%
15.3%
15.2%
Retirement/Pension
14.3%
0.1%
34.4%
Worksite/Voluntary/Supplement
2.2%
2.0%
0.0%
Long-Term Care
1.4%
0.2%
0.8%
Employee Benefits TPA
14.8%
0.0%
5.1%
All Other
20.1%
31.5%
18.5%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$576,852
Average
1.04x
High
$3,200,000
High
2.50x
Low
$16,362
Low
0.50x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
26.3%
$2,202,771
2.8%
Revenue by Aquisition
*Excludes Group Medical