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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
Regional Analysis
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
12.9% 12.5% 13.8% 8.4% 6.2%
Net Revenue Growth (Organic)
0.0% 0.1% 1.4% 1.1% -0.2%
Profitability as
% of Net
Revenues
Pre-tax Profit
15.4% 18.8% 21.4% 15.7% 25.7%
Pro Forma Pre-tax Profit
20.7% 22.6% 22.8% 25.5% 31.0%
Operating Pre-tax Profit
4.0% 8.7% 9.5% 6.0% 13.1%
EBITDA
17.8% 22.8% 24.8% 17.6% 28.1%
Pro Forma EBITDA
23.0% 26.6% 26.2% 27.3% 33.4%
Value Creation “Rule of 20” Score
11.6
13.3
15.2
14.8
16.5
Productivity
Revenue per Employee
$120,305 $134,707 $145,884 $148,073 $148,840
Compensation per Employee $73,267 $80,374 $83,072 $94,123 $76,429
Spread per Employee
$47,038 $58,333 $62,812 $53,950 $72,412
Pay Levels for
Producers
Commercial P&C
$96,237 $135,901 $110,939 $90,046 $108,290
Personal P&C
$63,729 $70,202 $50,442 $46,014 $54,704
Life & Health / Financial
$218,603 $77,023 $60,052 $76,622 $69,531
Multiline
$118,267 $107,768 $102,487 $94,765 $156,847
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$45,154 $41,897 $53,625 $44,587 $40,877
Personal P&C
$39,363 $34,190 $35,396 $38,245 $35,079
Life & Health / Financial
$40,051 $30,176 $37,292 $35,301
*
Multiline
$41,544
*
$31,576 $47,141
*
Pay Levels for
Account Execs
Commercial P&C
$60,074 $59,925 $63,479 $55,788 $46,532
Life & Health / Financial
$49,075 $38,546 $52,200 $44,000
*
Number of
Carriers
PL - National
4.4
4.4
3.2
5.9
6.5
PL - Regional
5.6
3.9
4.7
2.3
3.2
CL - National
6.6
9.0
8.0
8.0
6.4
CL - Regional
5.7
6.5
7.1
3.8
6.0
EB - All
9.6
6.9
9.7
10.3
5.9
Service Center
Use
Total PL Comms Placed
*
23.3% 59.7% 59.9% *
Total CL Comms Placed
5.4% 4.0% 24.0% 18.4% 4.0%
% of Agencies Making an Acquisition in the
last 12 Months
0.0% 3.6% 16.1% 0.0% 0.0%
*Insufficient Data