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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 OVER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
10.2% 11.6% 7.9% 9.3% 8.8%
Net Revenue Growth (Organic)
6.9% 8.9% 10.0% 11.8% 10.3%
Profitability as %
of Net Revenues
Pre-tax Profit
20.1% 14.6% 14.3% 14.9% 13.6%
Pro Forma Pre-tax Profit
22.5% 18.4% 17.3% 20.1% 18.1%
Operating Pre-tax Profit
12.2% 7.0% 5.4% 7.0% 7.5%
EBITDA
24.9% 17.1% 18.0% 17.6% 16.6%
Pro Forma EBITDA
27.3% 21.0% 21.0% 22.7% 21.1%
Value Creation “Rule of 20” Score
21.1
19.9
21.0
22.6
21.3
Productivity
Revenue per Employee
$170,133 $167,372 $177,201 $176,521 $198,161
Compensation per Employee $102,067 $111,083 $115,544 $116,296 $121,067
Spread per Employee
$68,787 $56,289 $61,656 $56,111 $69,095
Pay Levels for
Producers
Commercial P&C
$154,744 $212,976 $211,581 $196,998 $206,088
Personal P&C
$56,636 $95,550 $91,252 $82,040 $96,860
Life & Health / Financial
$143,337 $231,604 $214,463 $202,515 $226,697
Multiline
$138,607 $263,547 $301,907 $204,075 $219,321
Total Number of
Service / Sales
Support Staff per
Line of Business
Commercial P&C
27.3
37.7
51.9
34.1
45.9
Personal P&C
15.9
9.3
9.4
10.2
8.1
Group Life & Health
9.3
12.4
25.3
6.9
11.9
Multiline
*
*
*
*
*
Total Service /
Sales Support
Staff Payroll as %
of LOB Revenue
Commercial P&C
22.9% 20.2% 19.7% 17.9% 20.2%
Personal Lines
23.3% 22.5% 27.7% 25.7% 23.1%
Group Life & Health
19.6% 14.9% 15.9% 12.2% 15.4%
Multiline
*
*
*
*
*
Number of
Carriers
Personal Lines
23
22
20
25
20
Commercial Lines
38
50
65
69
58
Life & Health
37
51
56
44
68
Service Center
Use
Total PL Comms Placed
(as % of PL Revenues)
25.8% 21.7% 25.7% 24.5% 26.2%
Total CL Comms Placed
(as % of CL Revenues)
12.5% 1.8% 1.3% 3.1% 5.0%
% of Agencies Making an Acquisition
in the last 12 Months
27.3% 36.0% 35.3% 25.0% 36.8%
*Insufficient Data