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2010 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
32
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Key Benchmarks at a Glance
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
-0.4%
0.4%
9.4%
Personal P&C
2.1%
1.7%
9.9%
Group Medical
6.8%
-1.5%
27.6%
All Other Group
-3.5%
*
38.8%
Total Organic Growth
1.0%
1.6%
10.5%
Profit
Pro Forma Pretax Profit
26.1%
44.0%
24.9%
Pro Forma EBITDA
29.3%
45.3%
29.0%
Rule of 20 Score
14.4
21.7
22.9
Financial
Average
Top 25%
Current Ratio
1.31:1
2.06:1
Receivable/Payable Ratio
40.3%
-10.9%
Accounts Receivables > 60 Days
36.6%
2.1%
Accounts Receivables > 90 Days
25.7%
1.9%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$147,188
$180,641
$135,750
Compensation per Employee
$83,724
$77,840
$76,304
Spread per Employee
$63,464
$102,801
$59,446
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$78,419
$163,002
Personal P&C
$28,811
$51,604
Life & Health/Financial
$33,321
$68,886
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$256,826
$405,483
Personal P&C
$177,147
$283,943
Life & Health/Financial
$241,979
$415,024
*Insufficient Data
**Excludes any acquired revenue