29 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
29
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
8.3%
9.6%
14.0%
Personal P&C
7.5%
8.5%
16.4%
Group Medical
1.2%
4.1%
17.8%
All Other Group
2.8%
*
*
Total Organic Growth
10.5%
11.8%
18.9%
Profit
Pro Forma Pretax Profit
23.0%
37.0%
27.5%
Pro Forma EBITDA
30.6%
42.6%
37.7%
Rule of 20 Score
23.7
30.3
35.3
Financial
Average
Top 25%
Current Ratio
1.74:1
3.24:1
Receivable/Payable Ratio
62.4%
-14.8%
Accounts Receivables > 60 Days
24.6%
1.4%
Accounts Receivables > 90 Days
8.0%
0.0%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$148,845
$200,208
$179,633
Compensation per Employee
$80,893
$82,280
$84,092
Spread per Employee
$67,951
$117,927
$95,541
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$57,126
$100,696
Personal P&C
$22,124
$32,506
Life & Health/Financial
$51,649
$80,523
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
20.5%
3.8
Personal P&C
23.2%
2.9
Group Life & Health/Financial
68.5%
0.9
*Insufficient Data
*Excludes any acquired revenue