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2010 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
92
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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
-2.2%
-4.3%
4.6%
Personal P&C
5.0%
5.0%
8.9%
Group Medical
2.0%
-0.2%
13.1%
All Other Group
5.8%
15.5%
7.5%
Total Organic Growth
0.8%
1.7%
10.0%
Profit
Pro Forma Pretax Profit
19.6%
31.6%
21.4%
Pro Forma EBITDA
22.9%
33.7%
23.9%
Rule of 20 Score
11.8
17.8
23.0
Financial
Average
Top 25%
Current Ratio
1.35:1
2.03:1
Receivable/Payable Ratio
38.3%
-4.0%
Accounts Receivables > 60 Days
-0.9%
3.1%
Accounts Receivables > 90 Days
-4.9%
2.3%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$162,267
$195,644
$185,835
Compensation per Employee
$107,680
$112,758
$117,989
Spread per Employee
$54,586
$82,886
$67,846
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$66,335
$117,175
Personal P&C
$47,270
$92,854
Life & Health/Financial
$106,151
$232,230
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$274,768
$492,254
Personal P&C
$191,313
$313,163
Life & Health/Financial
$325,474
$731,369
*Excludes any acquired revenue