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2013 Best
Practices Study
195
2013 Best Practices Study
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Population Density
Agencies with Revenues UNDER $5,000,000
Population Where Home Office is Located:
Less than
50,000
50,000 to
250,000
250,000 to
1,000,000
Over
1,000,000
% of Agencies Located in Each Region
19.9% 15.7%
6.5%
10.2%
Net Revenue Growth (Organic)
8.1%
8.6%
7.6%
12.1%
Profitability as %
of Net Revenues
Pre-tax Profit
21.5% 21.0% 24.7% 18.3%
Pro Forma Pre-tax Profit
26.6% 26.7% 28.2% 23.7%
Operating Pre-tax Profit
13.8% 13.2% 17.0% 10.5%
EBITDA
25.3% 24.2% 25.3% 21.5%
Pro Forma EBITDA
30.4% 29.8% 28.8% 26.8%
Value Creation “Rule of 20” Score
23.4
23.7
24.4
25.8
Productivity
Revenue per Employee
$132,765
$140,429
$149,912
$143,372
Compensation per Employee
$72,608
$78,815
$78,589
$86,537
Spread per Employee
$60,157
$61,614
$71,323
$56,834
Pay Levels for
Producers
Commercial P&C
$88,671
$103,569
$110,298
$154,926
Personal P&C
$46,098
$52,535
$56,009
$74,471
Life & Health / Financial
$83,593
$68,723
$90,270
$95,024
Multiline
$76,603
$102,136
$135,673
$149,760
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
3.3
4.8
4.8
6.4
Personal P&C
3.6
3.5
2.1
3.5
Group Life & Health
1.0
1.0
1.5
1.1
Multiline
3.0
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
17.9% 20.0% 19.4% 25.8%
Personal Lines
22.3% 22.5% 19.4% 27.8%
Group Life & Health
29.2% 20.6% 21.7% 30.8%
Multiline
25.2%
*
*
*
Number of
Carriers
Personal Lines
11
13
16
17
Commercial Lines
11
23
21
25
Life & Health
7
12
6
11
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
*
36.6% 20.3% 43.7%
Total CL Comms Placed
(as % of CL Revenues)
13.9%
5.6%
10.8% 13.6%
% of Agencies Making an Acquisition
in the last 12 Months
11.6%
8.8%
7.1%
13.6%
*Insufficient Data