12 / 110
AGENCY CHARACTERISTICS
Less than
50,000-
250,000-
Over
50,000
250,000
1,000,000
1,000,000
% of Agencies Located in Each
Population Size
13.2%
24.8%
28.1%
33.9%
Net Revenue Growth
21.8%
9.4%
14.8%
13.4%
Profitability as % of Net Revenues
Pre-tax
18.5%
14.8%
11.1%
10.9%
Pro Forma Pre-tax
22.1%
17.2%
18.0%
15.3%
Operating Pre-tax
6.3%
5.6%
1.9%
1.9%
Productivity
Revenue per Employee
$120,116
$123,393
$127,623
$131,425
Compensation per Employee
$69,186
$75,462
$85,216
$85,523
Spread per Employee
$50,930
$47,931
$42,406
$45,902
Pay Levels for Producers
Commercial P&C Producers
$154,125
$153,996
$136,869
$158,334
Personal P&C Producers
$35,371
$52,625
$58,541
$101,244
Life & Health Producers
$121,055
$126,373
$172,347
$141,127
Multiline Producers
$80,766
$103,112
$124,725
$136,886
Pay Levels for CSRs
Commercial P&C CSRs
$34,655
$35,317
$39,353
$45,133
Personal P&C CSRs
$28,266
$29,736
$32,867
$37,800
Life & Health CSRs
$32,844
$33,818
$37,593
$41,270
Multiline CSRs
*
*
*
*
Number of Carriers
PL - National
6.7
5.2
5.0
6.7
PL - Regional
5.5
4.7
3.0
3.0
CL - National
18.4
16.2
15.5
25.7
CL - Regional
10.6
16.5
7.6
16.7
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
*
4.0%
5.9%
11.4%
Total Comm'l Lines Commission
placed in Carrier Service Center
1.8%
3.2%
1.9%
2.6%
* - Insufficient Data
SPECIAL POPULATION DENSITY ANALYSIS
Agencies with Revenues Greater Than $1,250,000
agency in a smaller community. As always, consider these data in light of the results achieved
by agencies of a similar revenue size to gain the best understanding of Best Practices agencies.
The population density analysis provides another valuable picture of the operating characteristics
of the agencies included in the Best Practices Study Executive Update. In general, a comparison
among agencies of a similar size is the best comparison basis, but an evaluation based on
community size can prove helpful when an agency is atypical in nature, such as a larger revenue
12