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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
Regional Analysis
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
8.8% 13.9% 14.8% 8.8% 6.0%
Net Revenue Growth (Organic)
5.8% 9.4% 7.2% 14.2% 8.9%
Profitability as %
of Net Revenues
Pre-tax Profit
16.9% 16.8% 25.6% 26.2% 19.1%
Pro Forma Pre-tax Profit
23.5% 23.5% 28.7% 30.6% 24.3%
Operating Pre-tax Profit
9.3% 10.7% 17.7% 15.1% 12.2%
EBITDA
21.1% 19.7% 28.3% 28.6% 22.5%
Pro Forma EBITDA
27.7% 26.5% 31.5% 33.0% 27.7%
Value Creation “Rule of 20” Score
20.7
23.7
24.4
28.4
23.0
Productivity
Revenue per Employee
$125,570 $132,635 $138,998 $176,613 $120,612
Compensation per Employee $72,097 $79,827 $74,269 $91,160 $71,675
Spread per Employee
$53,473 $52,808 $64,702 $85,453 $48,937
Pay Levels for
Producers
Commercial P&C
$86,385 $125,655 $93,562 $111,154 $108,312
Personal P&C
$58,856 $48,144 $55,475
*
$50,901
Life & Health / Financial
$58,333 $109,036 $77,559
*
$81,046
Multiline
$90,447 $106,551 $84,573 $122,291 $120,059
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
3.3
4.9
4.1
5.9
4.9
Personal P&C
4.5
2.7
3.8
3.3
2.1
Group Life & Health
0.9
1.0
1.3
1.2
0.8
Multiline
*
*
3.4
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
26.3% 19.8% 16.0% 17.6% 27.8%
Personal Lines
20.7% 21.7% 22.3% 24.8% 30.0%
Group Life & Health
40.3% 22.2% 22.5% 20.6% 24.3%
Multiline
*
*
22.0%
*
*
Number of
Carriers
Personal Lines
10
17
10
13
19
Commercial Lines
11
25
15
23
20
Life & Health
7
10
9
6
11
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
*
18.6%
*
*
36.9%
Total CL Comms Placed
(as % of CL Revenues)
14.0% 6.4% 8.6%
*
16.2%
% of Agencies Making an Acquisition
in the last 12 Months
21.1% 3.3% 9.4% 10.5% 15.4%
*Insufficient Data