104 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
104
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.2%
3.5%
4.0%
High
11.6%
Low
0.5%
10 Largest Accounts
13.9%
12.9%
15.7%
High
36.4%
Low
2.3%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
22.6%
32.2%
23.6%
Disability
17.5%
24.6%
19.5%
Dental & Vision
27.1%
17.2%
34.2%
Retirement/Pension
6.9%
11.8%
10.4%
Worksite/Voluntary/Supplement
12.9%
13.5%
4.5%
Long-Term Care
1.5%
0.6%
0.2%
Employee Benefits TPA
5.2%
0.0%
5.6%
All Other
6.2%
0.0%
2.0%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$947,473
Average
1.8x
High
$5,650,109
High
2.7x
Low
$41,962
Low
1.5x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
20.9%
$428,856
5.6%
Revenue by Acquisition
*Excludes Group Medical