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2006 BEST PRACTICES STUDY - APPENDIX
117
2006 Best Practices Study
REGIONAL ANALYSIS
AGENCIES WITH REVENUES
LESS THAN
$2,500,000
Northeast
Southeast
Midwest
Southwest
West
% of Agencies Located in each Region
24.2% 24.2% 30.3% 9.0% 12.1%
Growth
Net Revenue Growth
9.5% 4.0% 5.9% 9.4% 8.3%
Profitability as % of Net Revenues
Pre-tax Profit
12.5% 19.0% 24.9% 18.6% 28.9%
Pro Forma Pre-tax Profit
22.1% 30.8% 33.5% 31.3% 32.2%
Operating Pre-tax Profit
1.9% 8.3% 14.1% 8.9% 20.9%
Productivity
Revenue per Employee
$117,948 $132,116 $123,763 $180,405 $135,496
Compensation per Employee
$72,035 $76,234 $63,670 $101,144 $63,451
Spread per Employee
$45,914 $55,882 $60,093 $79,261 $72,045
Pay Levels for Producers
Commercial P&C Producers
$85,044 $102,364 $65,758 $98,835 $72,967
Personal P&C Producers
$48,899 $38,483 $45,978
*
$26,667
Life & Health Producers
$88,958 $72,500 $64,226
*
*
Multiline Producers
$67,950 $122,391 $103,852
*
$63,500
Pay Levels for CSRs
Commercial P&C CSRs
$46,196 $42,421 $31,344 $41,875 $42,875
Personal P&C CSRs
$36,018 $33,078 $29,784 $31,304 $30,600
Life & Health CSRs
$32,217
*
$18,386 $31,000
*
Multiline CSRs
$33,755 $32,850 $33,346
*
*
Number of Carriers
PL - National
2.9
3.6
1.5
3.0
3.9
PL - Regional
4.8
3.1
4.9
1.5
1.9
CL - National
2.6
4.4
2.0
12.3
4.6
CL - Regional
4.4
5.1
4.8
5.3
1.4
EB - All
7.6
5.8
11.3
4.5
5.8
Service Center Use
Total PL Commissions placed
in Carrier Service Centers
*
*
*
*
*
Total CL Commissions placed
in Carrier Service Centers
0.0% 1.4%
*
*
*
% of Agencies Making an Acquisition
in the Last 12 Months
6.3% 12.5% 0.0% 0.0% 0.0%
*Insufficient Data