81 / 168
2014 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
81
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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
11.3%
14.0%
21.5%
Personal P&C
5.3%
5.3%
7.3%
Group Medical
-2.0%
-2.4%
-0.7%
All Other Group
3.9%
2.3%
-17.3%
Total Organic Growth
8.1%
9.5%
17.4%
Profit
Pro Forma Pretax Profit
21.8%
34.9%
23.8%
Pro Forma EBITDA
25.1%
37.2%
27.9%
Rule of 20 Score
20.3
27.7
29.5
Financial
Average
Top 25%
Current Ratio
1.28:1
1.82:1
Receivable/Payable Ratio
46.5%
7.7%
Accounts Receivables > 60 Days
16.0%
1.1%
Accounts Receivables > 90 Days
6.8%
-4.8%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$169,297
$215,833
$186,611
Compensation per Employee
$104,563
$125,966
$110,740
Spread per Employee
$64,733
$89,868
$75,871
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$73,374
$146,073
Personal P&C
$37,952
$59,620
Life & Health/Financial
$74,463
$149,171
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
19.5%
13.5
Personal P&C
23.3%
9.5
Group Life & Health/Financial
17.3%
2.8
*Excludes any acquired revenue