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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
8
Analysis of Agencies with Revenues Under $1,250,000
2012 Best
Practices Study
Agencies with
Revenues
Under
$1,250,000
Revenue Growth by Source
(continued)
*Insufficient Data
Average
+25% Profit
+25% Growth
Group Medical L&H
Renewals
1
87.4%
90.9%
94.8%
New Business
2
7.5%
7.2%
7.6%
Acquired Revenues
3
0.0%
0.0%
0.0%
Organic Growth
4
-5.1%
-1.9%
2.5%
Total Growth
5
-5.1%
-1.9%
2.5%
All Other Group L&H
Renewals
1
87.4%
*
*
New Business
2
9.2%
*
*
Acquired Revenues
3
0.0%
*
*
Organic Growth
4
-3.4%
*
*
Total Growth
5
-3.4%
*
*
Individual L&H
Renewals
1
46.5%
31.1%
11.4%
New Business
2
65.2%
89.6%
139.2%
Acquired Revenues
3
0.2%
0.0%
0.0%
Organic Growth
4
11.7%
20.7%
50.6%
Total Growth
5
12.0%
20.7%
50.6%
Total Commissions & Fees
Renewals
1
88.9%
87.9%
90.0%
New Business
2
13.6%
18.5%
19.8%
Acquired Revenues
3
0.5%
0.0%
0.0%
Organic Growth
4
2.5%
6.3%
9.7%
Total Growth
5
3.0%
6.3%
9.7%
Brokerage Commission Expense Growth
*
*
*
Net Commissions & Fees Growth (Organic)
6
2.4%
6.4%
9.7%
Net Commissions & Fees Growth (Total)
7
2.9%
6.4%
9.7%
Other Income
P&C Contingent Income Growth
-4.3%
-21.3%
13.9%
L&H Bonus Income Growth
*
*
*
Investment Income Growth
-22.1%
*
-8.4%
Gross Revenue Growth
2.5%
5.4%
11.6%
Net Revenue Growth (Organic)
8
1.9%
5.4%
11.6%
Net Revenue Growth (Total)
9
2.4%
5.4%
11.6%
1
Renewal Revenues
as a % of
prior year’s total revenues for
this line of business. This figure
is impacted by attrition (loss
or retention of accounts) and
by changes in premium and
commission levels. The higher
the %, the more favorable the
results.
2
New Revenues
as a % of prior
year’s total revenues for this line
of business. The higher the %,
the more favorable the results.
3
Acquired Revenues
as a %
of prior year’s total revenues
for this line of business. The
% indicates the significance of
acquired business.
4
Growth in Revenues
from
prior year excluding acquired
revenues.
5
Growth in Revenues
from
prior year including acquired
revenues.
6
Growth in Total Commissions &
Fees
less Brokerage Commission
Expense
from prior year
excluding acquired revenues.
7
Growth in Total Commissions &
Fees
less Brokerage Commission
Expense
from prior year including
acquired revenues.
8
Growth in Net Revenues
(Gross Revenue less Brokerage
Commission Expense)
from
prior year excluding acquired
revenues.
9
Growth in Net Revenues
(Gross Revenue less Brokerage
Commission Expense)
from
prior year including acquired
revenues.