2006 Best Practices Study

2006 BEST PRACTICES STUDY - APPENDIX

POPULATION DENSITY AGENCIES WITH REVENUES GREATER THAN $2,500,000

Less than 500,000

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

17.6% 27.8% 29.6% 25.0%

% of Agencies Located in Each Population Size

12.1% 7.3% 9.0% 6.8%

Net Revenue Growth

Profitability as % of Net Revenues Pre-tax Profit

17.6% 16.8% 13.1% 16.1% 23.1% 24.2% 19.4% 21.8% 4.8% 3.8% 2.4% 4.8%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$135,353 $152,317 $159,457 $158,432 $83,102 $94,755 $108,343 $101,678 $52,252 $57,562 $51,114 $56,754

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$149,924 $176,895 $222,699 $194,132 $46,946 $61,191 $68,395 $102,369 $151,607 $149,121 $241,004 $160,878 $154,942 $180,081 $168,079 $201,648

Multiline Producers

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$43,548 $44,075 $47,186 $53,419 $33,908 $35,178 $37,713 $41,272 $38,948 $42,365 $45,866 $52,318

Life & Health CSRs

Multiline CSRs

*

*

*

*

Number of Carriers PL - National

7.0 7.0

6.2 6.1

6.9 4.4

8.2 5.1

PL - Regional CL - National CL - Regional

17.3 10.8 17.2

16.1 13.7 31.0

21.8 15.6 40.7

28.0 14.1 35.5

EB - All

Service Center Use

Total PL Commissions placed

in Carrier Service Centers

6.9% 31.0% 26.4% 29.7%

Total CL Commissions placed

in Carrier Service Centers

3.6% 6.0% 2.0% 3.6% *Insufficient Data

2006 Best Practices Study

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