2005 Best Practices Study

2005 BEST PRACTICES STUDY - APPENDIX

POPULATION DENSITY AGENCIES WITH REVENUES LESS THAN $2,500,000

Less than 500,000

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

54.8% 21.9% 11.0% 12.3%

% of Agencies Located in Each Population Size

7.9% 9.2% 4.0% 11.5%

Net Revenue Growth

Profitability as % of Net Revenues Pre-tax Profit

19.7% 18.6% 20.1% 19.0% 25.4% 29.8% 28.3% 25.2% 10.5% 11.4% 11.1% 10.9%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$107,667 $131,296 $119,597 $157,008 $60,434 $70,827 $63,261 $88,034 $47,233 $60,469 $56,336 $68,974

Compensation per Employee

Spread per Employee

Pay Levels for Producers

Commercial P&C Producers Personal P&C Producers Life & Health Producers

$64,432 $106,643 $40,711 $34,057

* *

$98,500

*

$78,187

*

$69,433 $68,000

Multiline Producers

$84,403 $106,624 $81,833 $163,701

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$35,152 $38,748 $39,715 $47,342 $28,466 $30,344 $34,788 $40,967

Life & Health CSRs

$23,562

*

$25,763

*

Multiline CSRs

$29,613 $34,167

*

$45,375

Number of Carriers PL - National

2.9 4.4 3.2 4.9 7.4

2.9 3.9 5.4 4.4 5.8

2.0 3.9 1.9 4.1 7.9

2.3 2.4 4.6 3.7

PL - Regional CL - National CL - Regional

EB - All

11.2

Service Center Use

Total PL Commissions placed

in Carrier Service Centers

41.2%

*

0.6%

*

Total CL Commissions placed

in Carrier Service Centers

5.6%

*

* 2.4% *Insufficient Data

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