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2012 Best Practices Study
Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
2012 Best
Practices Study
147
Population Density
Agencies with Revenues OVER $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
3.7% 12.5% 17.1% 17.1%
Net Revenue Growth (Organic)
2.5%
4.0%
4.9%
4.1%
Profitability as %
of Net Revenues
Pre-tax Profit
11.2% 11.4% 13.1% 13.4%
Pro Forma Pre-tax Profit
13.8% 15.7% 16.4% 17.2%
Operating Pre-tax Profit
2.3%
3.0%
5.0%
6.2%
EBITDA
17.4% 15.8% 15.5% 16.6%
Pro Forma EBITDA
20.0% 20.0% 18.8% 20.3%
Value Creation “Rule of 20” Score
13.4
15.4
14.3
14.7
Productivity
Revenue per Employee
$159,584
$155,406
$169,152
$194,252
Compensation per Employee
$100,306
$103,695
$113,827
$129,832
Spread per Employee
$59,278
$51,711
$55,325
$64,420
Pay Levels for
Producers
Commercial P&C
$129,242
$195,711
$202,674
$222,383
Personal P&C
$39,413
$63,940
$80,655
$86,664
Life & Health / Financial
$144,025
$179,534
$186,275
$248,853
Multiline
$140,879
$165,032
$176,843
$146,694
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$45,169
$50,989
$49,582
$54,788
Personal P&C
$38,041
$42,053
$41,900
$49,028
Life & Health / Financial
$39,354
$52,668
$51,523
$53,551
Multiline
*
$43,899
*
*
Pay Levels for
Account Execs
Commercial P&C
$69,222
$85,988
$101,038
$89,709
Personal Lines
$58,775
$40,466
$56,202
$64,891
Life & Health / Financial
$54,661
$82,648
$97,572
$89,070
Number of
Carriers
PL - National
17.6
8.1
13.5
12.2
PL - Regional
9.0
12.8
8.3
9.5
CL - National
52.3
27.1
34.1
33.4
CL - Regional
16.7
31.2
24.7
17.4
EB - All
36.1
42.1
47.3
53.4
Service Center
Use
Total PL Comms Placed
*
16.4% 32.8% 23.2%
Total CL Comms Placed
21.0%
2.9%
6.4%
1.9%
% of Agencies Making an Acquisition in the last 12
Months
28.5% 16.7% 21.2% 18.2%
*Insufficient Data