147 / 168
2014 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
147
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
Average
+25% Profit
+25% Growth
Total Number of Employees (FTE)
275.8
241.8
282.8
Revenue Per Employee
$203,873
$218,807
$210,296
Compensation Per Employee
$131,686
$127,274
$135,612
Spread Per Employee
$72,187
$91,533
$74,684
Average
+25% Profit
+25% Growth
Average number of Agency Employees
that work remotely
10.4
7.7
*
% of Agencies with Remote Workers
41.4%
42.9%
14.3%
Employee Productivity
Administrative Staff
Accounting & HR Department Info
Average
Top 25%
Accounting Department
Total Number of Employees in Accounting Department
10.5
High
28.0
Low
4.0
Revenue per Accounting Employee
$5,851,191
$8,490,813
Total Payroll for Accounting Employees
$687,670
Accounting Payroll as % of Net Revenue
1.2%
HR Department
Total Number of Employees in HR Department
3.2
High
9.0
Low
1.0
Revenue per HR Employee
$20,788,247
$34,281,300
Total Payroll for HR Employees
$240,620
HR Payroll as % of Net Revenue
0.4%
*Insufficient Data
5%
0%
2008
EBITDA Margin
Operating Margin
4.5%
4.9%
4.5%
4.7%
5.9%
7.5%
2010
2007
2009
2011
2012
2013
2014
7-Productivity
Revenue Per Employee Compensation Per Employee Spread Per Employee
$0
$50K
$100K
$150K
$200K
$250K
$203,873
$218,807
$210,296
$131,686
$127,274
$135,612
$72,187
$91,533
8-How-Successful-Prod-Spent-Time
Most Successful
Commercial P&C Producer
Most Successful
L&H Producer
Average
+25% Profit
+25% Growth
Pro Forma EBITDA
Personal
Training/
Education/
Prof. Dev.
5.9%
Soliciting New Business
30.4%
Mgmt/Personnel/
Agency Admin.
11.4%
Servicing
Existing Accounts
52.4%
Personal
Training/
Education/
Prof. Dev.
8.2%
Soliciting New Business
34.7%
Mgmt/Personnel/
Agency Admin.
11.1%
Servicing
Existing Accounts
46.1%
3.5%
$74,684