2005 Best Practices Study

2005 BEST PRACTICES STUDY - APPENDIX

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

Northeast

Southeast

Midwest

Southwest

West

% of Agencies Located in each Region

Growth

Net Revenue Growth

10.6% 11.6% 9.8% 4.6% 11.2%

Profitability as % of Net Revenues Pre-tax Profit

17.3% 16.3% 14.5% 18.9% 12.5% 24.4% 21.6% 20.4% 25.4% 14.5% 5.3% 7.7% 2.7% 7.4% 1.9%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$150,326 $155,191 $147,765 $147,202 $153,178 $91,345 $99,299 $96,828 $92,780 $100,136 $58,982 $55,891 $50,937 $54,422 $53,042

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$155,059 $208,059 $192,976 $167,882 $214,681

$81,598 $72,576 $69,016 $63,203

*

$200,225 $204,684 $162,860 $125,136 $145,712 $167,668 $174,411 $182,576 $149,107 $199,305

Multiline Producers

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$47,763 $42,739 $43,112 $48,919 $50,926 $38,883 $35,136 $35,730 $35,189 $40,959 $44,736 $43,130 $41,486 $45,216 $50,339

Life & Health CSRs

Multiline CSRs

*

*

*

*

*

Number of Carriers PL - National

7.1 7.3

9.1 3.2

4.4 5.8

5.3 2.8

10.2

PL - Regional CL - National CL - Regional

3.0

14.2 10.4 25.6

23.6 14.3 29.9

10.9 19.5 44.0

11.1

36.4 18.8 39.5

8.6

EB - All

31.6

Service Center Use

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

20.9% 27.2% 16.6% 32.1% 45.6%

6.6% 7.8% 1.6% 3.7% 3.9%

% of Agencies Making an Acquisition in the Last 12 Months

22.2% 20.7% 20.8% 16.7% 23.5% *Insufficient Data

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