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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
50
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
2011 Best
Practices Study
Agencies with
Revenues Between
$2,500,000 and
$5,000,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
0.7%
0.0%
6.1%
Personal P&C
2.1%
2.1%
6.8%
Group Medical
3.6%
5.7%
10.4%
All Other Group
5.0%
10.6%
25.8%
Total Organic Growth
1.1%
1.3%
8.3%
Profit
Pro Forma Pretax Profit
20.0%
32.5%
20.3%
Pro Forma EBITDA
23.0%
33.6%
25.2%
Rule of 20 Score
12.6
20.4
25.1
Financial
Average
Top 25%
Current Ratio
1.33:1
1.99:1
Receivable/Payable Ratio
58.2%
0.7%
Accounts Receivables > 60 Days
10.6%
2.1%
Accounts Receivables > 90 Days
2.0%
1.5%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$149,696
$176,147
$159,764
Compensation per Employee
$94,610
$106,345
$95,983
Spread per Employee
$55,086
$69,803
$63,780
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$65,948
$130,441
Personal P&C
$37,601
$74,412
Life & Health/Financial
$47,585
$104,845
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$272,402
$450,380
Personal P&C
$184,158
$314,305
Life & Health / Financial
$297,404
$417,062
Key Benchmarks at a Glance
**Excludes any acquired revenue