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2010 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
62
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
-1.5%
-3.3%
2.3%
Personal P&C
-0.1%
-4.6%
3.4%
Group Medical
4.3%
16.4%
9.8%
All Other Group
-2.3%
*
8.2%
Total Organic Growth
0.1%
-1.4%
3.7%
Profit
Pro Forma Pretax Profit
19.9%
32.7%
26.6%
Pro Forma EBITDA
23.2%
33.7%
27.8%
Rule of 20 Score
11.8
15.6
20.6
Financial
Average
Top 25%
Current Ratio
1.33:1
2.02:1
Receivable/Payable Ratio
42.7%
1.3%
Accounts Receivables > 60 Days
20.9%
6.6%
Accounts Receivables > 90 Days
11.9%
2.2%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$145,400
$155,769
$155,484
Compensation per Employee
$91,736
$90,567
$96,528
Spread per Employee
$53,664
$65,202
$58,956
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$60,631
$118,595
Personal P&C
$47,205
$89,213
Life & Health/Financial
$49,502
$99,462
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$297,795
$506,198
Personal P&C
$171,057
$308,220
Life & Health/Financial
$293,981
$491,789
*Insufficient Data
**Excludes any acquired revenue