2005 Best Practices Study

2005 BEST PRACTICES STUDY - APPENDIX

POPULATION DENSITY AGENCIES WITH REVENUES GREATER 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:

13.8% 28.4% 26.6% 31.2%

% of Agencies Located in Each Population Size

13.8% 7.7% 9.5% 11.2%

Net Revenue Growth

Profitability as % of Net Revenues Pre-tax Profit

19.7% 17.9% 13.5% 14.3% 24.0% 23.9% 20.6% 18.4% 9.5% 6.9% 3.5% 2.8%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$141,300 $146,274 $156,591 $155,323 $81,428 $90,703 $103,384 $101,593 $59,873 $55,571 $53,207 $53,730

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$166,752 $168,677 $209,754 $196,361 $44,664 $59,014 $86,977 $84,359 $156,419 $129,813 $257,607 $156,917 $196,114 $177,576 $180,339 $162,829

Multiline Producers

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$39,611 $42,069 $44,563 $52,695 $32,080 $34,954 $36,549 $42,057 $40,676 $39,168 $42,241 $50,685

Life & Health CSRs

Multiline CSRs

*

*

*

*

Number of Carriers PL - National

7.9 7.0

5.4 5.0

8.9 3.2

7.5 4.7

PL - Regional CL - National CL - Regional

17.1 10.9 25.5

15.3 17.2 30.2

20.9 12.7 34.4

21.9 15.5 37.1

EB - All

Service Center Use

Total PL Commissions placed

in Carrier Service Centers

*

21.0% 27.5% 35.3%

Total CL Commissions placed

in Carrier Service Centers

1.9% 5.8% 3.5% 6.0% *Insufficient Data

116