2008 Best Practices Study

2008 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

POPULATION DENSITY Agencies with Revenues OVER $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

11.8%

24.7%

32.3%

31.2%

Net Revenue Growth (Organic)

3.0%

5.6%

6.7%

3.1%

Pre-tax Profit

24.3%

13.8%

17.1%

15.0%

Pro Forma Pre-tax Profit

24.5%

18.5%

21.6%

21.5%

Operating Pre-tax Profit

8.9%

2.2%

6.0%

3.4%

Profitability as % of Net Revenues

EBITDA

27.3%

17.5%

20.0%

18.1%

Pro Forma EBITDA

27.8%

22.1%

23.5%

24.6%

“Rule of 20” Score

18.0

16.6

18.9

15.4

Revenue per Employee

$160,948

$156,505

$171,119

$196,208

Productivity

Compensation per Employee

$91,815

$101,710

$108,943

$128,316

Spread per Employee

$69,133

$54,794

$62,176

$67,892

Commercial P&C Producers

$189,268

$219,992

$238,643

$261,034

Personal P&C Producers

$44,188

$73,007

$82,019

$86,960

Pay Levels for Producer

Life & Health Producers

$161,245

$203,152

$238,231

$270,405

Multiline Producers

$156,471

$209,077

$148,385

$184,599

Commercial P&C CSRs

$55,800

$48,666

$51,494

$58,523

Personal P&C CSRs

$43,310

$38,902

$52,993

$43,872

Pay Levels for CSRs

Life & Health CSRs

$51,475

$43,336

$43,172

$55,247

Multiline CSRs

*

*

*

*

PL - National

10.0

9.0

9.0

8.3

PL - Regional

8.8

5.3

6.3

6.1

Number of Carriers

CL - National

24.8

28.3

26.1

30.8

CL - Regional

14.3

11.9

28.4

25.0

EB - All

34.6

46.9

56.7

48.5

Total PL Comms Placed

*

27.9%

19.1%

31.7%

Service Center Use

Total CL Comms Placed

10.5%

4.6%

1.7%

1.6%

% of Agencies Making an Acquisition in the last 12 Mths

36.4%

13.0%

40.0%

31.0%

*Insufficient Data

122

2008 Best Practices Study | Appendix