40 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
40
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Revenue by Account Concentration
Average
+25% Profit
+25% Growth
% of Revenue Derived from:
Largest Account
4.7%
5.0%
5.0%
High
15.9%
Low
0.9%
10 Largest Accounts
15.4%
16.9%
17.0%
High
29.2%
Low
3.0%
Average
+25% Profit
+25% Growth
“Other” Group Life & Health* Revenue (% from source)
Life
29.0%
*
*
Disability
12.1%
*
*
Dental & Vision
21.8%
*
*
Retirement/Pension
0.8%
*
*
Worksite/Voluntary/Supplement
16.1%
*
*
Long-Term Care
2.1%
*
*
Employee Benefits TPA
8.1%
*
*
All Other
10.0%
*
*
What the Typical Transactions Looked Like
Revenues Acquired per Transaction
Multiples of Revenue Paid
Average
$103,860
Average
1.4x
High
$273,000
High
2.0x
Low
$23,778
Low
0.5x
Acquired Revenues
% of Agencies
Acquiring
Average
Commissions
Acquired
% of
Net Revenues
Acquisitions Made in Last 12 Months
17.6%
$45,645
2.3%
Revenue by Acquisition
*Insufficient Data
*Excludes Group Medical