136 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
136
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
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
3.1%
3.1%
3.6%
High
12.5%
Low
0.6%
10 Largest Accounts
13.3%
14.2%
13.2%
High
33.5%
Low
2.7%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
21.1%
11.3%
41.1%
Disability
15.0%
23.4%
11.0%
Dental & Vision
22.0%
23.0%
30.0%
Retirement/Pension
4.8%
4.8%
-0.2%
Worksite/Voluntary/Supplement
8.8%
5.0%
3.7%
Long-Term Care
1.1%
1.9%
0.0%
Employee Benefits TPA
4.5%
1.4%
0.8%
All Other
22.5%
29.0%
13.7%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$768,441
Average
1.3x
High
$2,500,000
High
1.9x
Low
$59,185
Low
0.5x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
27.3%
$539,663
3.1%
Revenue by Acquisition
*Excludes Group Medical