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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 OVER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
12.0% 11.2% 9.4% 6.9% 6.7%
Net Revenue Growth (Organic)
2.9% -1.2% 1.3% 0.5% -1.2%
Profitability as
% of Net
Revenues
Pre-tax Profit
15.8% 12.9% 9.4% 12.1% 13.2%
Pro Forma Pre-tax Profit
20.2% 17.2% 12.4% 20.2% 16.5%
Operating Pre-tax Profit
3.0% 3.6% -0.5% 2.8% 3.4%
EBITDA
20.8% 17.2% 13.2% 13.8% 13.2%
Pro Forma EBITDA
25.2% 21.5% 16.2% 21.9% 19.0%
Value Creation “Rule of 20” Score
15.5
9.5
9.4
11.4
8.3
Productivity
Revenue per Employee
$172,613 $152,865 $164,037 $179,255 $191,224
Compensation per Employee $104,423 $102,191 $115,186 $124,915 $127,000
Spread per Employee
$68,190 $50,674 $48,851 $54,340 $64,225
Pay Levels for
Producers
Commercial P&C
$209,212 $209,002 $217,745 $199,631 $203,813
Personal P&C
$59,828 $77,704 $72,517 $97,120 $142,290
Life & Health / Financial
$216,490 $207,399 $258,933 $233,186 $229,162
Multiline
$132,554 $237,099 $260,874 $181,689 $180,933
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$52,134 $45,293 $48,307 $48,370 $57,025
Personal P&C
$44,316 $40,318 $43,754 $42,426 $50,842
Life & Health / Financial
$50,486 $44,605 $47,720 $44,289 $61,145
Multiline
*
*
*
*
*
Pay Levels for
Account Execs
Commercial P&C
$86,700 $78,733 $86,400 $72,627 $93,843
Life & Health / Financial
$73,195 $81,908 $82,246 $65,165 $98,667
Number of
Carriers
PL - National
8.6
9.4
6.4
11.5
10.5
PL - Regional
7.4
10.7
10.8
3.8
6.5
CL - National
20.4
31.8
15.0
46.4
38.3
CL - Regional
11.4
28.3
31.8
14.6
21.9
EB - All
32.6
48.1
54.4
36.8
58.2
Service Center
Use
Total PL Comms Placed
28.0% 13.7% 24.0% 26.3% 38.7%
Total CL Comms Placed
3.8% 1.9% 1.1% 4.4% 1.9%
% of Agencies Making an Acquisition in the
last 12 Months
11.1% 8.0% 28.6% 13.3% 26.7%
*Insufficient Data