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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 OVER $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
7.3%
9.6%
15.1% 17.0%
Net Revenue Growth (Organic)
6.5%
10.3%
8.8%
10.1%
Profitability as %
of Net Revenues
Pre-tax Profit
14.5% 17.9% 16.6% 15.5%
Pro Forma Pre-tax Profit
16.7% 20.4% 20.5% 19.3%
Operating Pre-tax Profit
5.8%
11.3%
8.8%
8.0%
EBITDA
18.9% 21.2% 18.7% 18.3%
Pro Forma EBITDA
21.1% 23.7% 22.6% 22.1%
Value Creation “Rule of 20” Score
17.1
22.2
19.0
20.7
Productivity
Revenue per Employee
$154,264
$181,040
$184,384
$194,521
Compensation per Employee
$95,138
$111,475
$118,418
$126,501
Spread per Employee
$58,946
$69,566
$65,966
$68,020
Pay Levels for
Producers
Commercial P&C
$131,722
$168,755
$209,249
$220,329
Personal P&C
$51,650
$66,885
$101,846
$81,690
Life & Health / Financial
$140,940
$200,951
$214,375
$226,808
Multi-Line
$180,497
$233,506
$210,006
$178,581
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
20.4
28.4
45.3
29.1
Personal P&C
14.5
9.0
12.8
9.8
Group Life & Health
6.3
13.6
19.3
17.7
Multi-Line
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
20.5% 19.9% 19.3% 20.6%
Personal Lines
26.4% 23.4% 25.1% 24.9%
Group Life & Health
16.3% 16.5% 14.4% 17.8%
Multi-Line
*
*
*
*
Number of
Carriers
Personal Lines
23.9
16.9
23.5
22.1
Commercial Lines
46.8
37.2
67.3
44.3
Life & Health
38.3
38.8
60.0
46.4
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
29.3% 27.6% 18.3% 23.6%
Total CL Comms Placed
(as % of CL Revenues)
*
3.1%
5.1%
2.7%
% of Agencies Making an Acquisition
in the last 12 Months
6.7%
20.0% 22.6% 22.9%
*Insufficient Data