3 / 168
2014 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
3
Analysis of Agencies with Revenues Under $1,250,000
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
1.8%
-12.7%
9.2%
Personal P&C
4.1%
2.7%
9.0%
Group Medical
-6.2%
-28.4%
-9.8%
All Other Group
-9.3%
*
*
Total Organic Growth
4.6%
1.4%
14.1%
Profit
Pro Forma Pretax Profit
26.1%
48.3%
27.1%
Pro Forma EBITDA
29.0%
48.6%
30.1%
Rule of 20 Score
18.2
24.1
23.5
Financial
Average
Top 25%
Current Ratio
1.53:1
2.82:1
Receivable/Payable Ratio
62.4%
12.3%
Accounts Receivables > 60 Days
48.5%
*
Accounts Receivables > 90 Days
4.2%
0.0%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$135,346
$214,865
$135,198
Compensation per Employee
$66,272
$78,802
$63,149
Spread per Employee
$69,074
$136,063
$72,049
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$33,020
$64,733
Personal P&C
$25,231
$43,224
Life & Health/Financial
*
*
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
25.5%
1.8
Personal P&C
25.8%
2.0
Group Life & Health/Financial
29.7
0.5
*Insufficient Data
*Excludes any acquired revenue