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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2011 Best Practices Study
2011 Best
Practices Study
148
Regional Analysis
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
13.0% 12.1% 13.0% 6.8% 7.7%
Net Revenue Growth (Organic)
-0.4% -1.1% 1.2% 3.0% -4.7%
Profitability as %
of Net Revenues
Pre-tax Profit
15.6% 17.9% 22.0% 25.1% 13.3%
Pro Forma Pre-tax Profit
20.1% 23.0% 23.8% 28.0% 24.2%
Operating Pre-tax Profit
6.6% 7.7% 9.8% 13.6% 6.9%
EBITDA
18.3% 20.9% 25.3% 27.3% 15.7%
Pro Forma EBITDA
22.8% 26.0% 27.2% 30.2% 26.6%
Value Creation “Rule of 20” Score
11.0
13.0
15.6
18.1
8.6
Productivity
Revenue per Employee
$122,046 $130,336 $143,885 $152,318 $137,485
Compensation per Employee $73,782 $77,119 $82,395 $79,968 $90,719
Spread per Employee
$48,264 $53,217 $61,490 $72,350 $46,766
Pay Levels for
Producers
Commercial P&C
$126,018 $135,560 $116,468 $134,193 $116,710
Personal P&C
$66,136 $60,389 $59,651 $55,589 $64,221
Life & Health / Financial
$255,936 $92,469 $72,567 $90,236 $105,229
Multiline
$117,120 $105,551 $99,380 $131,413 $82,300
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$43,638 $41,848 $38,990 $38,140 $41,566
Personal P&C
$37,880 $34,855 $34,550 $32,202 $33,864
Life & Health / Financial
$37,314 $33,746 $35,970
*
*
Multiline
$43,156 $27,117 $36,672
*
$38,033
Pay Levels for
Account Execs
Commercial P&C
$67,637 $62,811 $53,461 $45,797 $57,182
Personal Lines
$49,524 $39,069 $42,943 $36,148 $38,696
Life & Health / Financial
$47,180
*
$53,000 $40,319 $48,690
Number of
Carriers
PL - National
4.4
5.0
4.2
5.4
6.7
PL - Regional
6.1
4.3
4.0
4.0
2.6
CL - National
4.6
6.8
7.5
6.6
7.7
CL - Regional
6.0
9.9
6.2
5.9
4.1
EB - All
7.9
8.5
7.6
5.6
10.8
Service Center
Use
Total PL Comms Placed
*
*
61.9%
*
45.2%
Total CL Comms Placed
7.8% 5.8% 31.8% 4.8% 23.6%
% of Agencies Making an Acquisition in the
last 12 Months
11.1% 0.0% 7.4% 0.0% 12.5%
*Insufficient Data