118 / 123
2006 BEST PRACTICES STUDY - APPENDIX
118
2006 Best Practices Study
REGIONAL ANALYSIS
AGENCIES WITH REVENUES
GREATER THAN
$2,500,000
Northeast
Southeast
Midwest
Southwest
West
% of Agencies Located in each Region
23.1% 24.0% 25.9% 12.0% 14.8%
Growth
Net Revenue Growth
8.4% 8.5% 7.9% 7.3% 10.8%
Profitability as % of Net Revenues
Pre-tax Profit
17.5% 15.4% 15.0% 17.5% 13.0%
Pro Forma Pre-tax Profit
25.2% 21.1% 20.9% 24.0% 18.4%
Operating Pre-tax Profit
3.3% 6.6% 1.3% 6.2% 2.4%
Productivity
Revenue per Employee
$153,479 $152,474 $146,667 $156,279 $161,370
Compensation per Employee
$94,239 $100,699 $95,481 $99,639 $105,681
Spread per Employee
$59,239 $51,775 $51,186 $56,639 $55,689
Pay Levels for Producers
Commercial P&C Producers
$163,152 $219,698 $178,172 $199,879 $186,936
Personal P&C Producers
$61,551 $89,783 $63,884 $80,459
*
Life & Health Producers
$205,813 $214,680 $148,434 $139,987 $163,004
Multiline Producers
$197,400 $169,016 $157,781 $130,984 $204,806
Pay Levels for CSRs
Commercial P&C CSRs
$47,630 $46,544 $42,574 $50,241 $54,256
Personal P&C CSRs
$37,699 $36,428 $34,786 $38,680 $42,200
Life & Health CSRs
$45,995 $45,623 $40,533 $47,787 $53,283
Multiline CSRs
*
*
*
*
*
Number of Carriers
PL - National
7.5
8.1
5.6
5.1
8.8
PL - Regional
7.2
4.2
7.7
2.8
3.6
CL - National
22.0
26.1
12.0
11.5
34.4
CL - Regional
10.7
13.3
14.4
9.2
22.7
EB - All
21.8
28.3
43.0
27.5
40.0
Service Center Use
Total PL Commissions placed
in Carrier Service Centers
25.6% 20.6% 15.7% 30.4% 36.5%
Total CL Commissions placed
in Carrier Service Centers
6.0% 2.7% 3.4% 2.8% 3.9%
% of Agencies Making an Acquisition
in the Last 12 Months
16.0% 11.5% 17.9% 38.5% 37.5%
*Insufficient Data