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Key Benchmarks
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
98
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
2012 Best
Practices Study
Agencies with
Revenues Between
$10,000,000 and
$25,000,000
Average
+25% Profit
+25% Growth
Growth
Organic Growth By Line of Business**
Commercial P&C
5.7%
4.0%
14.7%
Personal P&C
7.2%
5.6%
9.6%
Group Medical
8.5%
12.3%
11.4%
All Other Group
10.2%
14.3%
22.8%
Total Organic Growth
4.7%
4.1%
12.4%
Profit
Pro Forma Pretax Profit
14.5%
25.0%
15.3%
Pro Forma EBITDA
17.7%
25.9%
17.0%
Rule of 20 Score
13.9
16.6
19.3
Financial
Average
Top 25%
Current Ratio
1.27:1
1.79:1
Receivable/Payable Ratio
39.0%
8.1%
Accounts Receivables > 60 Days
11.8%
1.8%
Accounts Receivables > 90 Days
4.2%
-17.7%
Productivity
Average
+25% Profit
+25% Growth
Revenue per Employee
$175,254
$194,243
$183,753
Compensation per Employee
$118,607
$121,042
$123,894
Spread per Employee
$56,647
$73,200
$59,859
Annual New Commission Generated per Validated Producer
Average
Top 25%
Commercial P&C
$92,968
$165,616
Personal P&C
$59,241
$82,820
Life & Health/Financial
$125,050
$228,969
Commissions Serviced per Service & Sales Support Staff
Average
Top 25%
Commercial P&C
$360,125
$571,425
Personal P&C
$208,943
$448,721
Life & Health / Financial
$421,338
$633,951
Key Benchmarks at a Glance
**Excludes any acquired revenue