98 / 155
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
98
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
2011 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
1.3%
1.6%
8.5%
Personal P&C
4.2%
4.7%
3.5%
Group Medical
5.2%
6.3%
14.3%
All Other Group
6.4%
6.3%
5.8%
Total Organic Growth
Profit
Pro Forma Pretax Profit
16.1%
28.1%
20.2%
Pro Forma EBITDA
19.7%
29.6%
25.8%
Rule of 20 Score
12.3
18.4
23.0
Financial
Average
Top 25%
Current Ratio
1.28:1
1.85:1
Receivable/Payable Ratio
42.1%
6.5%
Accounts Receivables > 60 Days
5.9%
3.7%
Accounts Receivables > 90 Days
-2.0%
1.1%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$177,397
$223,658
$203,950
Compensation per Employee
$117,724
$135,644
$126,275
Spread per Employee
$59,673
$88,014
$77,675
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$79,542
$135,910
Personal P&C
$43,191
$58,541
Life & Health/Financial
$131,957
$256,805
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$345,322
$506,229
Personal P&C
$208,727
$303,178
Life & Health / Financial
$386,573
$569,668
Key Benchmarks at a Glance
**Excludes any acquired revenue