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2010 Best Practices Study
2010 Best
Practices Study
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Population Density
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Less than
50,000
50,000 to
250,000
250,000 to
1,000,000
Over
1,000,000
% of Agencies Located in Each Region
24.6% 12.5%
7.1%
9.8%
Net Revenue Growth (Organic)
1.2%
-1.2%
1.9%
0.0%
Profitability as %
of Net Revenues
Pre-tax Profit
19.1% 18.4% 21.6% 17.5%
Pro Forma Pre-tax Profit
23.4% 21.3% 25.0% 26.1%
Operating Pre-tax Profit
8.3%
6.5%
8.1%
8.2%
EBITDA
22.6% 20.5% 25.1% 19.6%
Pro Forma EBITDA
26.9% 23.4% 28.5% 28.1%
Value Creation “Rule of 20” Score
15.1
10.5
16.2
14.1
Productivity
Revenue per Employee
$130,983
$135,153
$148,500
$156,627
Compensation per Employee
$74,250
$77,142
$85,160
$101,053
Spread per Employee
$56,732
$58,011
$63,340
$55,574
Pay Levels for
Producers
Commercial P&C
$87,879
$100,162
$146,434
$136,740
Personal P&C
$45,838
$61,750
$74,516
$67,574
Life & Health / Financial
$63,037
$140,902
$176,451
$84,271
Multiline
$101,496
$110,411
$118,726
$156,625
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$48,209
$44,388
$42,125
$47,692
Personal P&C
$33,479
$38,329
$35,939
$40,143
Life & Health / Financial
$30,176
$37,584
$44,604
$38,877
Multiline
$31,592
$45,761
*
*
Pay Levels for
Account Execs
Commercial P&C
$56,250
$53,180
$62,235
$66,433
Life & Health / Financial
$47,678
*
*
$47,140
Number of
Carriers
PL - National
3.8
4.1
5.4
6.3
PL - Regional
5.0
4.4
2.4
3.3
CL - National
5.1
7.8
11.1
11.6
CL - Regional
6.2
5.9
6.4
5.4
EB - All
9.2
5.6
11.0
9.5
Service Center
Use
Total PL Comms Placed
34.3% 54.3% 51.8% 33.6%
Total CL Comms Placed
13.5% 10.3% 14.1%
4.7%
% of Agencies Making an Acquisition in the last 12
Months
7.3%
0.0% 12.5% 20.0%
*Insufficient Data