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2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
73
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
Revenue by Account Size
(as measured by Comm. & Fees – not premium)
Average
+25% Profit
+25% Growth
Commercial P&C
Greater than $25,000
% of Book
27.5%
19.4%
30.7%
# of Accounts
11.8
9.4
13.9
Total Revenue
$657,540
$497,427
$716,542
Revenue per Account
$55,768
$52,669
$51,550
Between $10,000 and $25,000
% of Book
16.3%
16.1%
18.4%
# of Accounts
25.4
27.0
27.2
Total Revenue
$380,955
$372,012
$427,818
Revenue per Account
$14,993
$13,778
$15,729
Between $5,000 and $10,000
% of Book
12.8%
12.9%
12.8%
# of Accounts
43.0
45.7
42.4
Total Revenue
$298,544
$296,934
$299,527
Revenue per Account
$6,939
$6,497
$7,064
Less than $5,000
% of Book
43.4%
51.6%
38.1%
# of Accounts
2,424.6
3,043.7
1,863.4
Total Revenue
$1,012,872
$1,189,883
$887,485
Revenue per Account
$418
$391
$476
(as measured by number of lives)
Average
+25% Profit
+25% Growth
Group L&H/Financial
Over 100 Lives
% of Book
32.5%
33.8%
25.2%
# of Accounts
4.0
4.5
4.3
Total Revenue
$161,603
$116,590
$177,096
Revenue per Account
$39,947
$25,090
$41,670
50 - 100 Lives
% of Book
24.1%
34.9%
15.0%
# of Accounts
8.9
16.8
5.0
Total Revenue
$109,851
$120,470
$70,453
Revenue per Account
$12,378
$7,192
$14,091
25 - 50 Lives
% of Book
14.9%
14.7%
10.1%
# of Accounts
13.6
9.0
13.2
Total Revenue
$60,549
$40,615
$56,671
Revenue per Account
$4,442
$4,513
$4,293
Under 25 Lives
% of Book
28.5%
16.6%
49.7%
# of Accounts
120.1
23.9
194.1
Total Revenue
$107,364
$28,687
$200,037
Revenue per Account
$894
$1,202
$1,030