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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
Regional Analysis
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
8.3% 13.6% 14.6% 9.3% 5.4%
Net Revenue Growth (Organic)
9.1% 10.0% 4.7% 6.4% 9.8%
Profitability as %
of Net Revenues
Pre-tax Profit
19.7% 16.2% 25.2% 25.1% 24.0%
Pro Forma Pre-tax Profit
26.0% 21.2% 27.9% 30.0% 27.7%
Operating Pre-tax Profit
10.5% 9.4% 18.1% 15.3% 19.2%
EBITDA
23.3% 18.9% 28.0% 27.6% 25.8%
Pro Forma EBITDA
29.6% 23.9% 30.7% 32.5% 29.4%
Value Creation “Rule of 20” Score
22.3
19.5
19.2
21.8
25.1
Productivity
Revenue per Employee
$136,203 $140,259 $150,707 $177,117 $136,658
Compensation per Employee $75,647 $86,354 $77,884 $92,731 $75,294
Spread per Employee
$60,556 $53,905 $72,823 $84,386 $61,364
Pay Levels for
Producers
Commercial P&C
$109,593 $160,399 $104,398 $125,083 $113,055
Personal P&C
$54,824 $48,183 $54,190 $57,500 $48,750
Life & Health / Financial
*
$108,878 $65,316
*
$106,000
Multi-Line
$100,390 $137,802 $105,279 $146,264
*
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
3.8
5.5
4.4
6.5
4.5
Personal P&C
5.3
2.9
4.3
3.6
1.9
Group Life & Health
0.8
1.4
1.3
0.9
0.9
Multi-Line
*
*
3.0
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
28.5% 22.8% 16.7% 18.3% 19.2%
Personal Lines
23.4% 24.6% 21.9% 27.1% 27.9%
Group Life & Health
47.1% 26.0% 12.6% 27.4% 12.1%
Multi-Line
*
*
20.6%
*
*
Number of
Carriers
Personal Lines
10.6
14.8
10.6
12.9
9.9
Commercial Lines
10.3
23.2
15.1
24.3
16.5
Life & Health
7.8
11.4
9.9
11.0
14.9
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
*
29.1%
*
*
*
Total CL Comms Placed
(as % of CL Revenues)
12.9% 3.6%
*
*
37.4%
% of Agencies Making an Acquisition
in the last 12 Months
17.6% 7.1% 6.7% 15.8% 18.2%
*Insufficient Data