37 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
37
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
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
4.5%
4.0%
3.8%
High
13.4%
Low
1.0%
10 Largest Accounts
16.5%
16.8%
14.3%
High
45.2%
Low
1.0%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
34.4%
46.7%
24.4%
Disability
19.5%
1.6%
25.4%
Dental & Vision
20.5%
14.7%
30.6%
Retirement/Pension
4.4%
14.4%
0.0%
Worksite/Voluntary/Supplement
8.2%
0.0%
19.6%
Long-Term Care
1.6%
5.6%
0.0%
Employee Benefits TPA
0.3%
0.0%
0.0%
All Other
11.3%
17.0%
0.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
*
Average
*
High
*
High
*
Low
*
Low
*
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
2.3%
$167,364
9.9%
Revenue by Aquisition
*Excludes Group Medical
*Insufficient Data