2011 Best Practices Study

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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
122
2011 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
Analysis of Agencies with Revenues Over $25,000,000
Average +25% Profit +25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C 491.4% -2.6% 6.3%
Personal P&C 4.8% 9.2% 11.8%
Group Medical 7.3% 3.7% 3.4%
All Other Group -2.2% 4.9% *
Total Organic Growth
Profit
Pro Forma Pretax Profit 14.9% 25.3% 13.8%
Pro Forma EBITDA 19.4% 27.6% 15.7%
Rule of 20 Score 13.0 17.8 16.8
Financial
Average Top 25%
Current Ratio 1.29:1 1.67:1
Receivable/Payable Ratio 50.5% 29.8%
Accounts Receivables > 60 Days 5.2% 2.0%
Accounts Receivables > 90 Days 2.0% 1.0%
Productivity
Average +25% Profit +25% Growth
Revenue per Employee $182,933 $189,725 $174,064
Compensation per Employee $118,162 $111,792 $117,660
Spread per Employee $64,771 $77,934 $56,404
Annual New Commission Generated per Validated Producer
Average Top 25%
Commercial P&C $113,096 $204,240
Personal P&C $51,538 $96,701
Life & Health/Financial $141,893 $254,771
Commissions Serviced per Service & Sales Support Staff
Average Top 25%
Commercial P&C $373,096 $467,627
Personal P&C $204,912 $684,431
Life & Health / Financial $422,608 $713,537
Key Benchmarks at a Glance
* Insufficient Data
**Excludes any acquired revenue