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2014 Best
Practices Study
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2014 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Population Density
Agencies with Revenues UNDER $5,000,000
Population Where Home Office is Located:
Less than
50,000
50,000 to
250,000
250,000 to
1,000,000
Over
1,000,000
% of Agencies Located in Each Population
20.4% 13.6%
6.4%
10.7%
Net Revenue Growth (Organic)
7.3%
7.1%
7.4%
9.3%
Profitability as %
of Net Revenues
Pre-tax Profit
22.0% 23.2% 21.9% 19.4%
Pro Forma Pre-tax Profit
27.2% 27.4% 23.8% 24.1%
Operating Pre-tax Profit
14.3% 15.3% 14.7% 12.1%
EBITDA
25.2% 25.9% 24.6% 21.4%
Pro Forma EBITDA
30.3% 30.1% 26.5% 26.1%
Value Creation “Rule of 20” Score
21.3
20.8
19.3
21.0
Productivity
Revenue per Employee
$139,349
$157,872
$161,489
$148,180
Compensation per Employee
$74,872
$83,587
$88,089
$90,925
Spread per Employee
$64,476
$74,285
$73,400
$57,255
Pay Levels for
Producers
Commercial P&C
$101,761
$137,256
$106,136
$160,844
Personal P&C
$43,516
$74,348
$63,333
$60,023
Life & Health / Financial
$64,598
$74,645
*
$107,141
Multi-Line
$99,545
$138,829
$140,436
$148,890
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
3.6
5.6
5.3
6.5
Personal P&C
4.1
4.0
2.4
3.3
Group Life & Health
1.3
1.1
*
0.9
Multi-Line
2.3
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
18.5% 20.6% 21.7% 24.7%
Personal Lines
22.6% 23.1% 21.7% 30.9%
Group Life & Health
59.1% 26.3%
*
27.6%
Multi-Line
20.2%
*
*
*
Number of
Carriers
Personal Lines
11.2
11.3
15.6
12.2
Commercial Lines
11.9
22.8
20.2
23.9
Life & Health
7.5
13.2
7.2
15.2
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
*
44.8% 25.6%
*
Total CL Comms Placed
(as % of CL Revenues)
12.9%
8.6%
26.0% 13.6%
% of Agencies Making an Acquisition
in the last 12 Months
16.7%
3.6%
0.0%
18.2%
*Insufficient Data