147 / 155
2011 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2011 Best
Practices Study
147
Population Density
Agencies with Revenues OVER $5,000,000
Population Where Home Office is Located:
Less than
50,000
50,000 to
250,000
250,000 to
1,000,000
Over
1,000,000
% of Agencies Located in Each Region
3.4% 11.6% 16.4% 15.9%
Net Revenue Growth (Organic)
-0.8%
0.8%
1.9%
1.5%
Profitability as %
of Net Revenues
Pre-tax Profit
12.8%
9.9% 15.8% 12.4%
Pro Forma Pre-tax Profit
16.1% 14.0% 18.6% 15.9%
Operating Pre-tax Profit
3.5%
0.0%
5.2%
3.7%
EBITDA
19.7% 14.2% 18.5% 16.0%
Pro Forma EBITDA
23.0% 18.3% 21.2% 19.5%
Value Creation “Rule of 20” Score
10.7
9.9
12.5
11.2
Productivity
Revenue per Employee
$126,900
$153,942
$173,566
$185,686
Compensation per Employee
$76,312
$103,366
$112,559
$124,534
Spread per Employee
$50,587
$50,576
$61,007
$61,153
Pay Levels for
Producers
Commercial P&C
$100,621
$212,423
$205,054
$214,918
Personal P&C
*
$62,143
$92,093
$127,397
Life & Health / Financial
$122,296
$194,323
$232,069
$244,420
Multiline
$62,636
$241,923
$211,634
$284,623
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$47,464
$48,818
$50,406
$58,456
Personal P&C
$43,081
$41,378
$41,089
$49,590
Life & Health / Financial
$37,673
$49,674
$52,884
$56,119
Multiline
*
*
*
*
Pay Levels for
Account Execs
Commercial P&C
$65,559
$80,104
$85,543
$95,485
Personal Lines
*
*
$69,535
$66,714
Life & Health / Financial
$58,296
$85,912
$93,733
$87,002
Number of
Carriers
PL - National
14.4
7.7
11.2
9.0
PL - Regional
9.6
11.0
9.3
3.8
CL - National
32.6
23.8
30.1
35.9
CL - Regional
14.0
22.3
24.7
14.0
EB - All
28.9
39.9
52.6
55.6
Service Center
Use
Total PL Comms Placed
*
23.8% 30.7% 18.7%
Total CL Comms Placed
10.7%
3.7%
2.4%
2.1%
% of Agencies Making an Acquisition in the last 12
Months
28.6% 20.8%
8.8% 21.2%
*Insufficient Data