2012 Best Practices Study

2012 Best Practices Study

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service 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

3.7% 12.5% 17.1% 17.1%

Net Revenue Growth (Organic)

2.5%

4.0%

4.9%

4.1%

Pre-tax Profit

11.2% 11.4% 13.1% 13.4%

Pro Forma Pre-tax Profit

13.8% 15.7% 16.4% 17.2%

Profitability as % of Net Revenues

Operating Pre-tax Profit

2.3%

3.0%

5.0%

6.2%

EBITDA

17.4% 15.8% 15.5% 16.6%

Pro Forma EBITDA

20.0% 20.0% 18.8% 20.3%

Value Creation “Rule of 20” Score

13.4

15.4

14.3

14.7

Revenue per Employee

$159,584

$155,406

$169,152

$194,252

Productivity

Compensation per Employee

$100,306

$103,695

$113,827

$129,832

Spread per Employee

$59,278

$51,711

$55,325

$64,420

Commercial P&C 

$129,242

$195,711

$202,674

$222,383

Personal P&C 

$39,413

$63,940

$80,655

$86,664

Pay Levels for Producers

Life & Health / Financial

$144,025

$179,534

$186,275

$248,853

Multiline

$140,879

$165,032

$176,843

$146,694

Commercial P&C 

$45,169

$50,989

$49,582

$54,788

Pay Levels for Service / Sales Support Staff

Personal P&C 

$38,041

$42,053

$41,900

$49,028

Life & Health / Financial

$39,354

$52,668

$51,523

$53,551

Multiline

*

$43,899

*

*

Commercial P&C

$69,222

$85,988

$101,038

$89,709

Pay Levels for Account Execs

Personal Lines

$58,775

$40,466

$56,202

$64,891

Life & Health / Financial

$54,661

$82,648

$97,572

$89,070

PL - National

17.6

8.1

13.5

12.2

PL - Regional

9.0

12.8

8.3

9.5

Number of Carriers

CL - National

52.3

27.1

34.1

33.4

CL - Regional

16.7

31.2

24.7

17.4

EB - All

36.1

42.1

47.3

53.4

Total PL Comms Placed

*

16.4% 32.8% 23.2%

2012 Best Practices Study

Service Center Use

Total CL Comms Placed

21.0%

2.9%

6.4%

1.9%

% of Agencies Making an Acquisition in the last 12 Months

28.5% 16.7% 21.2% 18.2%

147

*Insufficient Data