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2013 Best
Practices Study
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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 OVER $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
6.9%
8.3%
15.7% 16.7%
Net Revenue Growth (Organic)
5.4%
8.1%
8.9%
12.3%
Profitability as %
of Net Revenues
Pre-tax Profit
16.9% 18.0% 16.3% 13.2%
Pro Forma Pre-tax Profit
19.7% 20.4% 20.2% 17.9%
Operating Pre-tax Profit
8.5%
11.3%
8.6%
5.4%
EBITDA
21.4% 22.2% 18.7% 16.5%
Pro Forma EBITDA
24.3% 24.7% 22.6% 21.1%
Value Creation “Rule of 20” Score
18.6
20.1
21.1
22.8
Productivity
Revenue per Employee
$156,500
$169,859
$179,592
$187,041
Compensation per Employee
$93,835
$101,585
$118,686
$124,823
Spread per Employee
$62,665
$68,274
$60,426
$62,219
Pay Levels for
Producers
Commercial P&C
$148,706
$182,343
$205,460
$217,754
Personal P&C
$60,664
$70,933
$90,279
$103,623
Life & Health / Financial
$152,269
$196,322
$239,545
$203,746
Multiline
$173,460
$180,455
$282,067
$227,429
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
27.8
26.6
47.2
41.6
Personal P&C
10.0
11.3
11.7
9.6
Group Life & Health
14.7
10.4
18.6
11.7
Multiline
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
19.0% 21.7% 18.8% 21.4%
Personal Lines
25.1% 25.6% 22.6% 25.0%
Group Life & Health
14.0% 15.0% 14.1% 17.8%
Multiline
*
*
*
*
Number of
Carriers
Personal Lines
29
15
24
22
Commercial Lines
53
40
78
41
Life & Health
46
30
66
49
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
48.5% 31.2% 21.5% 22.3%
Total CL Comms Placed
(as % of CL Revenues)
11.8%
4.6%
6.2%
2.3%
% of Agencies Making an Acquisition
in the last 12 Months
20.0% 33.3% 35.3% 33.3%
*Insufficient Data