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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2012 Best Practices Study
2012 Best
Practices Study
146
Population Density
Agencies with Revenues UNDER $5,000,000
Population Where Home Office is Located:
Less than
50,000
50,000 to
250,000
250,000 to
1,000,000
Over
1,000,000
% of Agencies Located in Each Region
19.3% 16.7%
5.7%
7.8%
Net Revenue Growth (Organic)
1.1%
1.7%
5.8%
2.2%
Profitability as %
of Net Revenues
Pre-tax Profit
19.4% 16.8% 26.3% 26.4%
Pro Forma Pre-tax Profit
22.7% 21.4% 29.1% 22.0%
Operating Pre-tax Profit
11.0%
7.8% 12.2% 12.4%
EBITDA
22.3% 19.2% 28.8% 24.4%
Pro Forma EBITDA
25.7% 23.8% 31.6% 20.1%
Value Creation “Rule of 20” Score
15.1
14.5
20.0
17.1
Productivity
Revenue per Employee
$123,827
$132,827
$157,980
$152,626
Compensation per Employee
$70,558
$79,576
$82,847
$91,606
Spread per Employee
$53,269
$53,251
$75,062
$61,021
Pay Levels for
Producers
Commercial P&C
$132,478
$101,954
$149,410
$139,306
Personal P&C
$34,420
$55,026
$82,492
$84,354
Life & Health / Financial
$79,368
$96,590
$129,954
$78,107
Multiline
$64,474
$111,831
$116,059
$137,281
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$41,529
$44,354
$43,209
$48,282
Personal P&C
$33,523
$36,677
$36,970
$44,976
Life & Health / Financial
$34,882
$34,793
$41,757
$33,536
Multiline
$29,895
*
*
$34,637
Pay Levels for
Account Execs
Commercial P&C
$47,636
$54,124
$58,274
$64,152
Personal Lines
$38,247
$39,424
$54,994
$48,200
Life & Health / Financial
$53,475
$33,934
$48,609
$56,035
Number of
Carriers
PL - National
4.8
5.7
4.8
5.6
PL - Regional
5.0
5.6
3.4
4.8
CL - National
5.1
9.1
10.5
10.9
CL - Regional
5.7
11.2
5.5
5.8
EB - All
7.6
11.1
7.5
8.9
Service Center
Use
Total PL Comms Placed
*
30.7% 20.4%
*
Total CL Comms Placed
7.3% 11.8%
8.4%
2.9%
% of Agencies Making an Acquisition in the last 12
Months
10.8%
3.1%
0.0%
0.0%
*Insufficient Data