2005 Best Practices Study

2005 BEST PRACTICES STUDY - APPENDIX

REGIONAL ANALYSIS AGENCIES WITH REVENUES LESS THAN $2,500,000

Northeast

Southeast

Midwest

Southwest

West

% of Agencies Located in each Region

Growth

Net Revenue Growth

9.5% 3.2% 9.3% 12.1% 7.8%

Profitability as % of Net Revenues Pre-tax Profit

10.1% 19.8% 22.3% 15.4% 28.6% 20.2% 29.2% 26.3% 29.1% 32.5% 2.9% 10.8% 13.3% 4.4% 21.5%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$105,101 $118,424 $115,773 $169,633 $123,454 $67,099 $64,248 $62,003 $98,968 $56,882 $38,003 $54,176 $53,770 $70,665 $66,572

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$96,514 $97,715 $63,113 $103,500 $64,900

$49,721

*

$36,763 $49,759 $24,791

*

$81,609 $59,127

* *

*

Multiline Producers

$60,261 $89,169 $90,305

$73,000

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$42,064 $44,362 $30,569 $39,833 $34,575 $32,994 $32,010 $30,206 $27,125 $28,334

Life & Health CSRs

*

$23,482 $22,000

* *

* *

Multiline CSRs

$38,700 $34,056 $31,252

Number of Carriers PL - National

3.0 4.7 2.1 4.3 3.6

3.4 3.5 4.5 4.8 5.6

1.8 5.3 2.2 5.4

2.6 1.6

4.1 1.6 1.7 1.6 8.2

PL - Regional CL - National CL - Regional

10.0

4.9 5.7

EB - All

10.8

Service Center Use

Total PL Commissions placed in Carrier Service Centers Total CL Commissions placed in Carrier Service Centers

*

*

42.7%

*

*

0.1% 1.2% 5.0%

*

*

% of Agencies Making an Acquisition in the Last 12 Months

13.3% 13.3% 3.7% 0.0% 0.0% *Insufficient Data

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