77 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
77
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 Growth by Source
(continued)
*Insufficient Data
Average
+25% Profit
+25% Growth
Group Medical L&H
Renewals
1
87.4%
90.4%
86.0%
New Business
2
15.9%
12.9%
19.1%
Acquired Revenues
3
0.0%
0.0%
0.0%
Organic Growth
4
3.3%
3.3%
5.0%
Total Growth
5
3.3%
3.3%
5.0%
All Other Group L&H
Renewals
1
84.1%
*
75.9%
New Business
2
21.6%
*
19.9%
Acquired Revenues
3
0.0%
*
0.0%
Organic Growth
4
5.7%
*
-4.1%
Total Growth
5
5.7%
*
-4.1%
Individual L&H
Renewals
1
63.2%
81.2%
73.3%
New Business
2
30.8%
16.4%
24.3%
Acquired Revenues
3
0.0%
0.0%
0.0%
Organic Growth
4
-6.0%
-2.4%
-2.4%
Total Growth
5
-6.0%
-2.4%
-2.4%
Total Commissions & Fees
Renewals
1
93.7%
94.6%
98.7%
New Business
2
16.3%
15.4%
18.1%
Acquired Revenues
3
0.5%
1.1%
1.1%
Organic Growth
4
10.0%
10.0%
16.8%
Total Growth
5
10.5%
11.1%
17.9%
Brokerage Commission Expense Growth
-18.8%
-12.3%
-5.7%
Net Commissions & Fees Growth (Organic)
6
10.2%
10.1%
17.2%
Net Commissions & Fees Growth (Total)
7
10.7%
11.2%
18.3%
Other Income
P&C Contingent Income Growth
-2.6%
8.7%
7.2%
L&H Bonus Income Growth
-8.0%
*
-29.4%
Investment Income Growth
-13.5%
2.6%
-16.1%
Gross Revenue Growth
9.7%
12.3%
20.4%
Net Revenue Growth (Organic)
8
9.5%
11.7%
20.0%
Net Revenue Growth (Total)
9
9.9%
12.7%
21.0%
1
Renewal Revenues
as a % of prior year’s total
revenues for this line of business. This figure is
impacted by attrition (loss or retention of accounts)
and by changes in premium and commission levels.
The higher the %, the more favorable the results.
2
New Revenues
as a % of prior year’s total revenues
for this line of business. The higher the %, the more
favorable the results.
3
Acquired Revenues
as a % of prior year’s total
revenues for this line of business. The % indicates
the significance of acquired business.
4
Growth in Revenues
from prior year excluding
acquired revenues.
5
Growth in Revenues
from prior year including
acquired revenues.
6
Growth in Total Commissions & Fees
less Brokerage
Commission Expense
from prior year excluding
acquired revenues.
7
Growth in Total Commissions & Fees
less Brokerage
Commission Expense
from prior year including
acquired revenues.
8
Growth in Net Revenues
(
Gross Revenue less
Brokerage Commission Expense
) from prior year
excluding acquired revenues.
9
Growth in Net Revenues
(
Gross Revenue less
Brokerage Commission Expense
) from prior year
including acquired revenues.