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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
26
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
2011 Best
Practices Study
Agencies with
Revenues Between
$1,250,000 and
$2,500,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
-0.9%
-8.3%
7.1%
Personal P&C
1.8%
1.7%
3.0%
Group Medical
6.6%
13.6%
18.6%
All Other Group
-20.4%
*
-15.2%
Total Organic Growth
1.5%
-1.7%
10.4%
Profit
Pro Forma Pretax Profit
24.0%
43.0%
28.2%
Pro Forma EBITDA
27.0%
43.8%
30.3%
Rule of 20 Score
14.1
22.8
26.0
Financial
Average
Top 25%
Current Ratio
1.42:1
2.23:1
Receivable/Payable Ratio
46.3%
-5.7%
Accounts Receivables > 60 Days
36.5%
6.6%
Accounts Receivables > 90 Days
17.2%
1.2%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$139,843
$171,845
$153,245
Compensation per Employee
$80,865
$76,495
$91,068
Spread per Employee
$58,978
$95,351
$62,177
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$47,006
$84,141
Personal P&C
$33,014
$65,500
Life & Health/Financial
$42,634
$98,052
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$270,863
$484,882
Personal P&C
$202,171
$337,874
Life & Health / Financial
$271,753
$387,694
Key Benchmarks at a Glance
* Insufficient Data
**Excludes any acquired revenue