148 / 155
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
148
Regional Analysis
Agencies with Revenues UNDER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
12.5% 12.0% 12.5% 5.7% 6.8%
Net Revenue Growth (Organic)
2.7% 1.8% 2.6% 4.6% 4.0%
Profitability as %
of Net Revenues
Pre-tax Profit
21.9% 19.1% 21.9% 26.9% 17.2%
Pro Forma Pre-tax Profit
24.7% 22.7% 24.7% 31.9% 20.9%
Operating Pre-tax Profit
9.9% 10.5% 9.9% 17.3% 9.9%
EBITDA
24.5% 22.0% 24.5% 29.0% 19.9%
Pro Forma EBITDA
27.5% 25.6% 27.5% 34.0% 23.6%
Value Creation “Rule of 20” Score
15.8
15.3
15.8
24.3
17.1
Productivity
Revenue per Employee
$145,667 $134,507 $145,667 $158,230 $132,096
Compensation per Employee $82,530 $79,926 $82,530 $80,343 $77,940
Spread per Employee
$63,137 $54,580 $63,137 $77,887 $54,157
Pay Levels for
Producers
Commercial P&C
$139,391 $139,722 $103,071 $129,342 $115,082
Personal P&C
$63,705 $60,382 $59,656 $54,556 $53,971
Life & Health / Financial
$154,499 $90,117 $76,083 $116,090 $94,577
Multiline
$98,571 $110,126 $105,265 $89,616 $96,133
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$42,464 $46,811 $37,271 $42,311 $51,189
Personal P&C
$39,509 $38,526 $33,921 $32,778 $35,583
Life & Health / Financial
$39,824 $28,734 $33,993
*
$36,381
Multiline
$33,062 $27,167 $29,375
*
$30,850
Pay Levels for
Account Execs
Commercial P&C
$64,867 $55,314 $52,925 $49,872 $54,952
Personal Lines
$48,001 $38,935 $39,348 $36,164 $41,167
Life & Health / Financial
$41,954 $37,000 $65,454 $34,988
*
Number of
Carriers
PL - National
3.4
6.7
3.4
5.9
6.8
PL - Regional
5.2
4.5
5.2
4.8
2.2
CL - National
8.1
9.5
8.1
11.0
8.6
CL - Regional
6.7
11.9
6.7
4.8
4.6
EB - All
7.3
9.0
7.3
5.7
11.8
Service Center
Use
Total PL Comms Placed
40.4% 14.6% 40.4%
*
28.7%
Total CL Comms Placed
16.7% 7.7% 16.7%
*
2.5%
% of Agencies Making an Acquisition in the
last 12 Months
4.2% 4.3% 4.2% 9.0% 0.0%
*Insufficient Data