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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
149
Regional Analysis
Agencies with Revenues OVER $5,000,000
Geographic Region:
Northeast Southeast Midwest Southwest
West
% of Agencies Located in Each Region
13.0% 11.5% 9.4% 8.3% 8.3%
Net Revenue Growth (Organic)
2.9% 4.2% 5.9% 4.8% 4.0%
Profitability as %
of Net Revenues
Pre-tax Profit
14.0% 14.2% 8.2% 13.8% 12.2%
Pro Forma Pre-tax Profit
17.8% 16.4% 10.6% 17.4% 19.1%
Operating Pre-tax Profit
5.4% 6.8% 0.8% 5.0% 5.0%
EBITDA
19.3% 16.7% 12.7% 15.4% 14.6%
Pro Forma EBITDA
23.1% 18.9% 15.1% 18.9% 21.5%
Value Creation “Rule of 20” Score
14.9
13.2
15.0
15.1
15.5
Productivity
Revenue per Employee
$171,084 $159,126 $171,572 $178,425 $194,888
Compensation per Employee $106,272 $106,906 $121,376 $120,821 $131,557
Spread per Employee
$64,811 $52,220 $50,196 $57,604 $63,330
Pay Levels for
Producers
Commercial P&C
$158,271 $211,113 $222,355 $203,542 $208,438
Personal P&C
$52,005 $82,815 $68,567 $95,985 $70,215
Life & Health / Financial
$138,934 $216,984 $234,393 $202,618 $205,717
Multiline
$96,618 $283,779 $174,228 $172,070 $143,398
Pay Levels for
Service / Sales
Support Staff
Commercial P&C
$53,527 $48,779 $49,377 $49,176 $55,885
Personal P&C
$42,952 $41,391 $43,134 $42,496 $52,990
Life & Health / Financial
$51,812 $49,350 $47,596 $47,350 $55,462
Multiline
$52,111
*
*
*
$37,604
Pay Levels for
Account Execs
Commercial P&C
$93,164 $92,376 $84,755 $76,223 $96,544
Personal Lines
$63,065 $65,946 $56,592 $55,775 $59,677
Life & Health / Financial
$75,757 $96,431 $88,066 $69,527 $101,822
Number of
Carriers
PL - National
9.3
16.7
7.9
10.7
16.7
PL - Regional
10.6
13.9
9.8
5.8
7.3
CL - National
23.7
42.7
22.0
37.8
46.5
CL - Regional
19.7
38.9
26.6
12.9
17.4
EB - All
34.3
81.6
56.5
34.4
71.2
Service Center
Use
Total PL Comms Placed
27.4% 20.1% 2.7% 33.9% 33.8%
Total CL Comms Placed
9.3% 1.7% 0.7% 2.2% 4.9%
% of Agencies Making an Acquisition in the
last 12 Months
24.0% 13.6% 33.3% 6.3% 18.8%
*Insufficient Data