133 / 168
2014 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
133
Analysis of Agencies with Revenues Over $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
7.1%
7.3%
12..0%
Personal P&C
2.6%
3.8%
4.0%
Group Medical
13.4%
15.8%
17.2%
All Other Group
4.9%
-9.6%
-2.6%
Total Organic Growth
8.8%
7.5%
18.9%
Profit
Pro Forma Pretax Profit
16.8%
25.6%
14.8%
Pro Forma EBITDA
19.9%
27.1%
18.4%
Rule of 20 Score
19.0
21.3
26.6
Financial
Average
Top 25%
Current Ratio
1.36:1
1.88:1
Receivable/Payable Ratio
52.6%
18.8%
Accounts Receivables > 60 Days
4.4%
0.6%
Accounts Receivables > 90 Days
3.2%
-5.2%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$203,873
$218,807
$210,296
Compensation per Employee
$131,686
$127,274
$135,612
Spread per Employee
$67,899
$76,111
$74,684
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$127,777
$227,160
Personal P&C
$51,360
$82,434
Life & Health/Financial
$162,104
$283,438
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
21.0%
100.1
Personal P&C
26.7%
13.1
Group Life & Health/Financial
15.3%
35.1
*Excludes any acquired revenue