3 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Under
$1,250,000
3
Analysis of Agencies with Revenues Under $1,250,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Key Benchmarks at a Glance
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business*
Commercial P&C
8.4%
7.9%
17.4%
Personal P&C
7.1%
3.6%
10.5%
Group Medical
13.9%
*
32.5%
All Other Group
7.5%
*
*
Total Organic Growth
6.9%
7.4%
19.2%
Profit
Pro Forma Pretax Profit
23.1%
38.6%
25.9%
Pro Forma EBITDA
30.3%
43.9%
33.9%
Rule of 20 Score
23.0
28.4
32.8
Financial
Average
Top 25%
Current Ratio
1.47:1
2.53:1
Receivable/Payable Ratio
48.6%
-20.2%
Accounts Receivables > 60 Days
44.9%
7.1%
Accounts Receivables > 90 Days
4.3%
0.0%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$121,438
$167,166
$144,442
Compensation per Employee
$61,327
$69,559
$61,750
Spread per Employee
$60,111
$97,607
$82,692
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$41,671
$78,757
Personal P&C
$19,940
$40,775
Life & Health/Financial
*
*
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
24.2%
2.0
Personal P&C
23.7%
1.9
Group Life & Health/Financial
49.2%
0.4
*Insufficient Data
*Excludes any acquired revenue