99 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
99
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
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
11.0%
10.6%
18.7%
Personal P&C
5.2%
5.2%
12.2%
Group Medical
1.1%
-10.2%
5.4%
All Other Group
4.6%
-8.5%
2.5%
Total Organic Growth
8.9%
9.2%
18.8%
Profit
Pro Forma Pretax Profit
21.7%
37.2%
18.3%
Pro Forma EBITDA
25.2%
39.4%
21.6%
Rule of 20 Score
21.5
27.3
26.1
Financial
Average
Top 25%
Current Ratio
1.12:1
1.71:1
Receivable/Payable Ratio
47.6%
2.9%
Accounts Receivables > 60 Days
9.1%
1.2%
Accounts Receivables > 90 Days
6.2%
-4.5%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$166,186
$198,245
$165,396
Compensation per Employee
$102,662
$109,475
$106,273
Spread per Employee
$63,524
$88,770
$59,123
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$71,317
$125,924
Personal P&C
$48,318
$93,466
Life & Health/Financial
$80,451
$140,324
Service Staff Total Payroll as % of Line of Business Revenue
Average
# of Service Staff
Commercial P&C
21.1%
14.0
Personal P&C
23.9%
8.8
Group Life & Health/Financial
15.8%
3.5
*Excludes any acquired revenue