131 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
131
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
Key Benchmarks
Mgmt. Perspectives
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
12.6%
10.7%
19.9%
Personal P&C
8.3%
3.5%
16.7%
Group Medical
6.9%
-5.4%
20.9%
All Other Group
6.3%
1.9%
-10.1%
Total Organic Growth
10.4%
7.3%
20.0%
Profit
Pro Forma Pretax Profit
17.3%
26.5%
15.4%
Pro Forma EBITDA
20.1%
29.2%
18.7%
Rule of 20 Score
21.3
23.4
28.4
Financial
Average
Top 25%
Current Ratio
1.31:1
1.96:1
Receivable/Payable Ratio
49.4%
2.0%
Accounts Receivables > 60 Days
7.0%
1.5%
Accounts Receivables > 90 Days
3.8%
-7.6%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$181,989
$213,735
$180,744
Compensation per Employee
$121,594
$134,131
$119,577
Spread per Employee
$60,395
$79,604
$61,167
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$82,668
$134,254
Personal P&C
$47,224
$69,064
Life & Health/Financial
$122,579
$222,525
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
19.5%
28.1
Personal P&C
24.9%
11.4
Group Life & Health/Financial
15.3%
9.7
*Excludes any acquired revenue