7 / 191
2010 Best
Practices Study
Agencies
with Revenues
Under $1,250,000
7
Analysis of Agencies with Revenues Under $1,250,000
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
3.8%
3.0%
3.0%
High
13.5%
Low
1.1%
10 Largest Accounts
13.1%
10.9%
12.6%
High
33.6%
Low
2.6%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
63.9%
80.5%
50.0%
Disability
2.0%
1.0%
0.0%
Dental & Vision
11.7%
0.5%
0.0%
Retirement/Pension
0.1%
0.5%
0.0%
Worksite/Voluntary/Supplement
9.1%
0.0%
25.0%
Long-Term Care
2.2%
12.0%
0.0%
Employee Benefits TPA
0.1%
0.5%
0.0%
All Other
10.9%
5.0%
25.0%
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
5.0%
$28,923
7.5%
Revenue by Aquisition
*Excludes Group Medical
*Insufficient Data