168 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
168
Analysis of Agencies with Revenues Over $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
2.5%
2.5%
3.2%
High
7.8%
Low
0.6%
10 Largest Accounts
9.8%
11.7%
11.4%
High
20.0%
Low
3.6%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
20.5%
24.5%
23.4%
Disability
18.7%
20.6%
19.8%
Dental & Vision
27.9%
36.4%
39.7%
Retirement/Pension
4.5%
0.5%
0.5%
Worksite/Voluntary/Supplement
10.9%
4.9%
4.1%
Long-Term Care
1.1%
1.1%
0.4%
Employee Benefits TPA
2.6%
1.6%
2.4%
All Other
13.9%
10.6%
9.7%
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$1,629,168
Average
1.2x
High
$8,300,000
High
1.8x
Low
$6,644
Low
0.4x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
53.8%
$2,063,560
4.1%
Revenue by Acquisition
*Excludes Group Medical