2003 Best Practices Study
SPECIAL POPULATION DENSITY ANALYSIS Agencies with Revenues Less Than $2,500,000
AGENCY CHARACTERISTICS
agency in a smaller community. As always, consider these data in light of the results achieved by agencies of a similar revenue size to gain the best understanding of Best Practices agencies. The population density analysis provides another valuable picture of the operating characteristics of the agencies included in the Best Practices Study Executive Update. In general, a comparison among agencies of a similar size is the best comparison basis, but an evaluation based on community size can prove helpful when an agency is atypical in nature, such as a larger revenue
Less than
50,000- 250,000
250,000- 1,000,000
Over
1,000,000
50,000
% of Agencies Located in Each Population Size
47.8%
24.6%
14.9%
14.5%
Net Revenue Growth
10.2%
15.8%
8.8%
2.0%
Profitability as % of Net Revenues Pre-tax
14.1% 21.2%
15.9% 27.0%
23.3% 27.7% 17.5%
10.4% 20.0%
Pro Forma Pre-tax Operating Pre-tax
5.4%
6.2%
1.1%
Productivity
Revenue per Employee
$100,528 $57,143 $43,386
$130,732 $82,353 $48,379
$113,022 $58,443 $54,579
$133,648 $84,570 $49,078
Compensation per Employee
Spread per Employee
Pay Levels for Producers Commercial P&C Producers
$78,422 $39,568 $72,833 $58,619
$92,895 $67,566 $169,235 $140,551
$113,461 $87,425 $76,445 $59,194
$111,401
Personal P&C Producers Life & Health Producers
* *
Multiline Producers
$120,886
Pay Levels for CSRs
Commercial P&C CSRs Personal P&C CSRs
$30,525 $25,197 $20,797 $26,060
$37,299 $30,611 $32,365
$40,212 $32,273 $27,230 $33,000
$41,551 $37,197 $33,250
Life & Health CSRs Multiline Producers
*
*
Number of Carriers PL - National
2.3 3.8 3.2 4.6
2.3 4.3 5.5 8.1
2.9 4.1 2.4 3.4
3.4 3.0 5.9 4.5
PL - Regional CL - National CL - Regional
Service Center Use Total Pers'l Lines Commission placed in Carrier Service Center Total Comm'l Lines Commission placed in Carrier Service Center
*
*
*
*
2.5%
1.4%
*
15.1%
* - Insufficient Data
Page 5 2003 Best Practices Study
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