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AGENCY CHARACTERISTICS
operating characteristics of the Best Practice agencies.
NE
SE
MW SW
W
Growth
Net Revenue Growth
13.7% 12.0% 14.8% 17.8% 13.5%
Profitability as % of Net Revenues
Pre-tax
15.2% 9.7% 14.2% 16.9% 10.8%
Pro Forma Pre-tax
21.3% 17.5% 17.0% 14.0% 14.9%
Operating Pre-tax
4.4% 2.1% 4.4% 4.9% 2.0%
Productivity
Revenue per Employee
$127,925 $126,939 $120,955 $127,539 $133,214
Compensation per Employee
$75,997 $84,391 $78,647 $75,032 $88,405
Spread per Employee
(1)
$51,928 $42,548 $42,308 $52,507 $44,809
Pay Levels for Producers
Commercial P&C Producers
$117,957 $177,765 $150,694 $113,097 $164,241
Personal P&C Producers
$60,382 $63,692 $53,424 $74,381 $94,157
Life & Health Producers
$134,107 $148,635 $137,462 $159,552 $146,063
Multiline Producers
$84,289 $127,944 $141,435 $133,133 $91,362
Pay Levels for CSRs
Commercial P&C CSRs
$39,900 $38,343 $36,004 $37,183 $48,331
Personal P&C CSRs
$32,325 $32,901 $30,267 $30,081 $40,522
Life & Health CSRs
$36,900 $37,104 $34,778 $36,285 $44,997
Multiline CSRs
*
*
*
*
*
Number of Carriers
PL - National
7.1
6.2
4.5
4.3
6.7
PL - Regional
5.7
3.1
3.8
2.8
3.2
CL - National
16.6
18.2
16.7
19.1
30.4
CL - Regional
13.1
12.3
13.0
7.2
21.2
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
14.2% 3.7% 2.0% 16.3% 12.2%
Total Comm'l Lines Commission
placed in Carrier Service Center
1.5% 2.2% 0.8% 3.4% 2.9%
% of Agencies Making
Acquisition in Last 12 Months
24.0% 5.6% 19.2% 25.0% 33.3%
* - Insufficient Data
(1)
Total revenue per employee minus compensation per employee. While revenue per employee
has been a standard productivity measure, the "spread" measures the dollars per employee available
to pay all other agency expenses and generate a profit for the agency.
SPECIAL REGIONAL ANALYSIS
Agencies with Revenues Greater Than $1,250,000
in conjunction with results by revenue group to gain the most complete understanding of the
The regional analysis provides another perspective for understanding the Best Practices data
in their proper context. However, characteristics regarded as unique to agencies in a certain
part of the country, or any regional factors influencing agency operations, are best considered
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