67 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
67
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
12.1%
13.5%
21.4%
Personal P&C
8.1%
10.4%
8.4%
Group Medical
3.3%
3.3%
5.0%
All Other Group
5.7%
*
-4.1%
Total Organic Growth
9.5%
11.7%
20.0%
Profit
Pro Forma Pretax Profit
23.5%
39.4%
27.3%
Pro Forma EBITDA
27.1%
40.8%
28.7%
Rule of 20 Score
23.7
30.5
31.5
Financial
Average
Top 25%
Current Ratio
1.25:1
2.07:1
Receivable/Payable Ratio
51.2%
-0.4%
Accounts Receivables > 60 Days
12.9%
1.4%
Accounts Receivables > 90 Days
5.9%
-9.1%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$154,386
$181,995
$185,777
Compensation per Employee
$91,627
$94,630
$116,131
Spread per Employee
$62,759
$87,366
$69,646
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$55,563
$88,659
Personal P&C
$55,372
$106,691
Life & Health/Financial
$64,925
$142,473
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
17.6%
6.5
Personal P&C
22.0%
4.2
Group Life & Health/Financial
18.3%
1.2
*Insufficient Data
*Excludes any acquired revenue