55 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
55
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
7.5%
6.5%
15.8%
Personal P&C
5.5%
3.6%
9.0%
Group Medical
-3.5%
-1.5%
-3.3%
All Other Group
-7.9%
*
12.3%
Total Organic Growth
7.8%
6.0%
19.1%
Profit
Pro Forma Pretax Profit
24.8%
41.2%
19.8%
Pro Forma EBITDA
27.9%
43.1%
22.4%
Rule of 20 Score
20.8
26.8
25.7
Financial
Average
Top 25%
Current Ratio
1.37:1
1.99:1
Receivable/Payable Ratio
59.1%
0.1%
Accounts Receivables > 60 Days
12.7%
1.1%
Accounts Receivables > 90 Days
5.9%
-0.9%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$156,595
$170,253
$139,829
Compensation per Employee
$92,306
$86,511
$85,039
Spread per Employee
$64,289
$83,742
$54,790
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$66,268
$121,036
Personal P&C
$47,682
$95,934
Life & Health/Financial
$49,850
$107,080
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
19.2%
6.9
Personal P&C
24.5%
5.1
Group Life & Health/Financial
20.1%
1.3
*Insufficient Data
*Excludes any acquired revenue