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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2
Analysis of Agencies with Revenues Under $1,250,000
2012 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
4.5%
7.3%
4.0%
Personal P&C
2.9%
3.4%
6.8%
Group Medical
-5.1%
-1.9%
2.5%
All Other Group
-3.4%
*
*
Total Organic Growth
1.9%
5.4%
11.6%
Profit
Pro Forma Pretax Profit
23.6%
40.9%
28.6%
Pro Forma EBITDA
26.2%
42.0%
30.9%
Rule of 20 Score
16.1
28.8
25.2
Financial
Average
Top 25%
Current Ratio
1.42:1
2.80:1
Receivable/Payable Ratio
58.1%
20.4%
Accounts Receivables > 60 Days
37.1%
*
Accounts Receivables > 90 Days
4.9%
-5.7%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$123,079
$185,418
$136,130
Compensation per Employee
$65,465
$74,862
$64,289
Spread per Employee
$57,614
$110,556
$71,841
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$40,953
$58,715
Personal P&C
$22,333
*
Life & Health/Financial
*
*
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$187,999
$249,047
Personal P&C
$143,323
$206,923
Life & Health / Financial
$115,558
*
Key Benchmarks at a Glance
* Insufficient Data
**Excludes any acquired revenue