183 / 191
183
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 OVER $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
4.0%
9.8% 14.3% 15.6%
Net Revenue Growth (Organic)
0.2%
2.8%
-1.2%
0.7%
Profitability as %
of Net Revenues
Pre-tax Profit
14.4% 11.9% 13.0% 13.1%
Pro Forma Pre-tax Profit
19.7% 15.7% 17.7% 17.7%
Operating Pre-tax Profit
4.5%
0.7%
2.0%
3.6%
EBITDA
21.8% 16.4% 16.0% 16.1%
Pro Forma EBITDA
27.1% 20.1% 20.7% 20.7%
Value Creation “Rule of 20” Score
13.7
12.9
9.1
11.1
Productivity
Revenue per Employee
$151,905
$164,926
$165,343
$182,085
Compensation per Employee
$92,699
$106,961
$110,936
$122,846
Spread per Employee
$59,205
$57,963
$54,408
$59,239
Pay Levels for
Producers
Commercial P&C
$174,644
$202,337
$218,473
$213,456
Personal P&C
$47,487
$55,523
$101,056
$117,338
Life & Health / Financial
$109,810
$177,866
$261,134
$274,184
Multiline
$84,853
$233,173
$184,296
$230,339
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$46,093
$46,311
$50,140
$53,141
Personal P&C
$43,073
$38,875
$42,570
$49,180
Life & Health / Financial
$37,579
$43,418
$52,595
$53,510
Multiline
*
*
*
*
Pay Levels for
Account Execs
Commercial P&C
$64,616
$79,082
$75,893
$96,825
Life & Health / Financial
$41,309
$78,637
$88,393
$82,038
Number of
Carriers
PL - National
12.2
8.9
10.1
7.3
PL - Regional
7.4
7.7
9.2
8.0
CL - National
29.2
26.9
30.2
27.9
CL - Regional
11.3
14.5
22.5
28.9
EB - All
21.9
34.4
56.8
48.8
Service Center
Use
Total PL Comms Placed
*
31.0% 17.3% 29.8%
Total CL Comms Placed
8.6%
2.7%
2.2%
2.1%
% of Agencies Making an Acquisition in the last 12
Months
11.1% 14.8% 15.6% 20.0%
*Insufficient Data