107 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
107
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Key Benchmarks at a Glance
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business*
Commercial P&C
10.7%
8.9%
17.4%
Personal P&C
7.4%
10.6%
6.9%
Group Medical
7.5%
7.8%
29.3%
All Other Group
1.0%
11.0%
-1.1%
Total Organic Growth
9.6%
9.3%
19.0%
Profit
Pro Forma Pretax Profit
19.2%
27.1%
17.5%
Pro Forma EBITDA
21.7%
28.5%
20.7%
Rule of 20 Score
20.3
23.6
28.8
Financial
Average
Top 25%
Current Ratio
1.26:1
2.02:1
Receivable/Payable Ratio
51.3%
10.5%
Accounts Receivables > 60 Days
10.2%
1.1%
Accounts Receivables > 90 Days
7.3%
-5.2%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$179,711
$205,213
$178,529
Compensation per Employee
$116,404
$120,665
$114,420
Spread per Employee
$63,308
$84,548
$64,109
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$91,816
$183,692
Personal P&C
$54,898
$94,922
Life & Health/Financial
$96,802
$167,392
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
20.3%
28.2
Personal P&C
26.0%
12.4
Group Life & Health/Financial
16.0%
10.5
*Excludes any acquired revenue