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AGENCY CHARACTERISTICS
operating characteristics of the Best Practice agencies.
NE
SE
MW SW
W
Growth
Net Revenue Growth
9.8% 7.8% 10.6% 7.8% 8.1%
Profitability as % of Net Revenues
Pre-tax
16.4% 15.1% 16.6% 19.2% 24.7%
Pro Forma Pre-tax
17.3% 19.3% 19.4% 24.5% 20.5%
Operating Pre-tax
3.3% 6.6% 4.6% 5.1% 7.6%
Productivity
Revenue per Employee
$93,639 $98,207 $90,671 $94,144 $106,676
Compensation per Employee
$51,006 $55,053 $49,179 $51,745 $48,422
Spread per Employee
(1)
$42,634 $43,155 $41,492 $42,399 $58,254
Pay Levels for Producers
Commercial P&C Producers
$70,880 $59,674 $77,000
*
$38,000
Personal P&C Producers
*
$27,167 $41,503
*
*
Life & Health Producers
*
*
$39,286
*
*
Multiline Producers
$61,168 $107,700 $60,659
*
$45,400
Pay Levels for CSRs
Commercial P&C CSRs
$32,653 $35,000 $25,866 $25,513 $33,529
Personal P&C CSRs
$28,275 $29,829 $27,943 $19,842 $24,814
Life & Health CSRs
$13,313
*
*
$14,129
*
Multiline CSRs
$37,017 $28,856 $25,832
*
*
Number of Carriers
PL - National
2.4
3.1
1.9
3.0
3.3
PL - Regional
4.3
3.2
4.2
2.5
1.8
CL - National
2.8
3.8
2.2
3.2
4.0
CL - Regional
4.9
4.5
4.1
4.0
2.7
Service Center Use
Total Pers'l Lines Commission
placed in Carrier Service Center
*
13.7%
*
*
27.2%
Total Comm'l Lines Commission
placed in Carrier Service Center
*
5.8%
*
*
15.3%
% of Agencies Making
Acquisition in Last 12 Months
0.0% 7.7% 0.0% 16.7% 0.0%
* - Insufficient Data
(1)
Total revenue per employee minus compensation per employee. While revenue per employee
has been a standard productivity measure, the "spread" measures the dollars per employee available
to pay all other agency expenses and generate a profit for the agency.
SPECIAL REGIONAL ANALYSIS
Agencies with Revenues Less Than $1,250,000
in conjunction with results by revenue group to gain the most complete understanding of the
The regional analysis provides another perspective for understanding the Best Practices data
in their proper context. However, characteristics regarded as unique to agencies in a certain
part of the country or any regional factors influencing agency operations are best considered
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