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Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
125
2011 Best
Practices Study
Agencies
with Revenues
Over
$25,000,000
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.3%
6.1%
6.6%
High
19.1%
Low
1.1%
10 Largest Accounts
9.4%
9.0%
9.5%
High
19.4%
Low
3.2%
Average
+25% Profit
+25% Growth
“Other” Group Revenue* (% from source)
Life
15.1%
25.6%
10.0%
Disability
16.2%
19.4%
5.0%
Dental & Vision
20.0%
16.6%
25.0%
Retirement/Pension
19.9%
33.4%
50.0%
Worksite/Voluntary/Supplement
9.0%
1.2%
5.0%
Long-Term Care
1.5%
0.1%
5.0%
Employee Benefits TPA
2.9%
0.0%
0.0%
All Other
15.4%
3.8%
0.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$2,328,187
Average
1.6x
High
$7,100,000
High
2.0x
Low
$23,820
Low
0.5x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
Percentage of
Net Revenues
Acquisitions Made in Last 12 Months
30.0%
$2,031,781
2.9%
Revenue by Acquisition
*Excludes Group Medical