2013 Best Practices Study
2013 Best Practices Study
Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix
Population Density Agencies with Revenues OVER $5,000,000
Less than 50,000
50,000 to 250,000
250,000 to 1,000,000
Over 1,000,000
Population Where Home Office is Located:
% of Agencies Located in Each Region
6.9%
8.3%
15.7% 16.7%
Net Revenue Growth (Organic)
5.4%
8.1%
8.9%
12.3%
Pre-tax Profit
16.9% 18.0% 16.3% 13.2%
Pro Forma Pre-tax Profit
19.7% 20.4% 20.2% 17.9%
Profitability as % of Net Revenues
Operating Pre-tax Profit
8.5%
11.3%
8.6%
5.4%
EBITDA
21.4% 22.2% 18.7% 16.5%
Pro Forma EBITDA
24.3% 24.7% 22.6% 21.1%
Value Creation “Rule of 20” Score
18.6
20.1
21.1
22.8
Revenue per Employee
$156,500
$169,859
$179,592
$187,041
Productivity
Compensation per Employee
$93,835
$101,585
$118,686
$124,823
Spread per Employee
$62,665
$68,274
$60,426
$62,219
Commercial P&C
$148,706
$182,343
$205,460
$217,754
Personal P&C
$60,664
$70,933
$90,279
$103,623
Pay Levels for Producers
Life & Health / Financial
$152,269
$196,322
$239,545
$203,746
Multiline
$173,460
$180,455
$282,067
$227,429
Commercial P&C
27.8
26.6
47.2
41.6
Total Number of Service / Sales Support Staff per Line of Business
Personal P&C
10.0
11.3
11.7
9.6
Group Life & Health
14.7
10.4
18.6
11.7
Multiline
*
*
*
*
Commercial P&C
19.0% 21.7% 18.8% 21.4%
Total Service / Sales Support
Personal Lines
25.1% 25.6% 22.6% 25.0%
Staff Payroll as % of LOB Revenue
Group Life & Health
14.0% 15.0% 14.1% 17.8%
Multiline
*
*
*
*
Personal Lines
29
15
24
22
Number of Carriers
Commercial Lines
53
40
78
41
Life & Health
46
30
66
49
Total PL Comms Placed (as % of PL Revenues) Total CL Comms Placed (as % of CL Revenues)
48.5% 31.2% 21.5% 22.3%
Service Center Use
2013 Best Practices Study
11.8%
4.6%
6.2%
2.3%
% of Agencies Making an Acquisition in the last 12 Months
20.0% 33.3% 35.3% 33.3%
196
*Insufficient Data
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