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

Regional Analysis Agencies with Revenues UNDER $5,000,000

Geographic Region:

Northeast Southeast Midwest Southwest

West

% of Agencies Located in Each Region

8.8% 13.9% 14.8% 8.8% 6.0%

Net Revenue Growth (Organic)

5.8% 9.4% 7.2% 14.2% 8.9%

Pre-tax Profit

16.9% 16.8% 25.6% 26.2% 19.1%

Pro Forma Pre-tax Profit

23.5% 23.5% 28.7% 30.6% 24.3%

Profitability as % of Net Revenues

Operating Pre-tax Profit

9.3% 10.7% 17.7% 15.1% 12.2%

EBITDA

21.1% 19.7% 28.3% 28.6% 22.5%

Pro Forma EBITDA

27.7% 26.5% 31.5% 33.0% 27.7%

Value Creation “Rule of 20” Score

20.7

23.7

24.4

28.4

23.0

Revenue per Employee $125,570 $132,635 $138,998 $176,613 $120,612 Compensation per Employee $72,097 $79,827 $74,269 $91,160 $71,675 Spread per Employee $53,473 $52,808 $64,702 $85,453 $48,937

Productivity

Commercial P&C

$86,385 $125,655 $93,562 $111,154 $108,312

Personal P&C

$58,856 $48,144 $55,475

*

$50,901

Pay Levels for Producers

Life & Health / Financial

$58,333 $109,036 $77,559

*

$81,046

Multiline

$90,447 $106,551 $84,573 $122,291 $120,059

Commercial P&C

3.3

4.9

4.1

5.9

4.9

Total Number of Service / Sales Support Staff per Line of Business

Personal P&C

4.5

2.7

3.8

3.3

2.1

Group Life & Health

0.9

1.0

1.3

1.2

0.8

Multiline

*

*

3.4

*

*

Commercial P&C

26.3% 19.8% 16.0% 17.6% 27.8%

Total Service / Sales Support

Personal Lines

20.7% 21.7% 22.3% 24.8% 30.0%

Staff Payroll as % of LOB Revenue

Group Life & Health

40.3% 22.2% 22.5% 20.6% 24.3%

Multiline

*

*

22.0%

*

*

Personal Lines

10

17

10

13

19

Number of Carriers

Commercial Lines

11

25

15

23

20

Life & Health

7

10

9

6

11

Total PL Comms Placed (as % of PL Revenues) Total CL Comms Placed (as % of CL Revenues)

*

18.6%

*

*

36.9%

Service Center Use

2013 Best Practices Study

14.0% 6.4% 8.6%

*

16.2%

% of Agencies Making an Acquisition in the last 12 Months

21.1% 3.3% 9.4% 10.5% 15.4%

197

*Insufficient Data