2007 Best Practices Study

2007 Best Practices Study

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

POPULATION DENSITY Agencies with Revenues UNDER $5,000,000

Less than 50,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

50,000 to 250,000

% of Agencies in Each Population Size

49.0%

27.5%

9.8%

13.7%

Net Revenue Growth (Organic)

10.9%

10.7%

9.6%

14.4%

Pre-tax Profit

22.9%

18.5%

21.8%

22.7%

Pro Forma Pre-tax Profit

30.6%

26.6%

27.4%

28.7%

Operating Pre-tax Profit

12.5%

8.1%

10.0%

10.3%

Profitability as % of Net Revenues

EBITDA

25.3%

20.0%

24.7%

24.6%

Pro Forma EBITDA

33.0%

28.2%

30.2%

35.1%

“Rule of 20” Score

24.3

24.0

25.1

29.9

Revenue per Employee

$128,437

$151,654

$143,555

$185,599

Compensation per Employee

$68,032

$88,618

$76,969

$109,638

Productivity

Spread per Employee

$60,405

$63,036

$66,586

$75,961

Commercial P&C Producers

$84,478

$146,920

$148,905

$124,859

Personal P&C Producers

$44,530

$80,955

$55,000

$49,741

Pay Levels for Producer

Life & Health Producers

$79,387

$186,489

*

$81,755

Multiline Producers

$94,663

$127,638

$90,631

$102,000

Commercial P&C CSRs

$39,859

$45,163

$36,436

$54,175

Personal P&C CSRs

$31,096

$35,615

$34,687

$41,349

Pay Levels for CSRs

Life & Health CSRs

$21,611

$34,120

$27,144

$44,505

Multiline CSRs

$30,392

*

*

*

PL - National

3.6

3.4

2.3

4.1

PL - Regional

5.7

4.2

3.2

3.0

Number of Carriers

CL - National

5.1

7.1

4.2

6.4

CL - Regional

8.5

8.2

4.3

5.1

EB - All

13.8

18.3

11.8

17.1

Total PL Comms Placed

22.1%

30.3%

*

39.2%

Service Center Use

Total CL Comms Placed

5.7%

9.1%

4.8%

3.2%

% of Agencies Making an Acquisition in the last 12 Mths

4.0%

7.1%

0.0%

0.0%

*Insufficient Data

175

2007 Best Practices Study | Appendix