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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
74
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$5,000,000 and
$10,000,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
4.8%
3.7%
6.9%
Personal P&C
1.1%
-0.2%
-0.1%
Group Medical
0.2%
2.4%
8.5%
All Other Group
-2.7%
-8.2%
-7.7%
Total Organic Growth
3.2%
4.3%
9.6%
Profit
Pro Forma Pretax Profit
18.7%
32.8%
23.4%
Pro Forma EBITDA
21.9%
34.8%
24.7%
Rule of 20 Score
14.5
21.0
19.0
Financial
Average
Top 25%
Current Ratio
1.34:1
1.91:1
Receivable/Payable Ratio
37.6%
-0.9%
Accounts Receivables > 60 Days
11.5%
1.4%
Accounts Receivables > 90 Days
5.5%
-7.8%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$166,061
$211,325
$188,015
Compensation per Employee
$110,653
$130,347
$126,085
Spread per Employee
$55,408
$80,978
$61,930
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$56,103
$82,140
Personal P&C
$40,427
$86,224
Life & Health/Financial
$87,307
$192,345
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$371,342
$692,358
Personal P&C
$238,317
$384,151
Life & Health / Financial
$455,998
$675,467
Key Benchmarks at a Glance
**Excludes any acquired revenue