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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
50
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$2,500,000 and
$5,000,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
5.1%
9.0%
10.2%
Personal P&C
1.9%
3.0%
7.2%
Group Medical
1.2%
3.7%
4.5%
All Other Group
-16.0%
-16.7%
-32.8%
Total Organic Growth
3.0%
7.6%
12.2%
Profit
Pro Forma Pretax Profit
21.7%
34.5%
27.8%
Pro Forma EBITDA
24.4%
35.4%
29.2%
Rule of 20 Score
15.8
25.9
25.6
Financial
Current Ratio
1.34:1
2.19:1
Receivable/Payable Ratio
36.2%
-5.2%
Accounts Receivables > 60 Days
15.0%
1.1%
Accounts Receivables > 90 Days
4.9%
-7.8%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$150,931
$167,543
$174,917
Compensation per Employee
$93,833
$99,815
$105,742
Spread per Employee
$57,097
$67,728
$69,175
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$62,236
$133,726
Personal P&C
$32,164
$58,051
Life & Health/Financial
$59,086
$130,027
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$309,011
$447,375
Personal P&C
$199,013
$348,920
Life & Health / Financial
$288,255
$421,275
Key Benchmarks at a Glance
**Excludes any acquired revenue