2009 Best Practices Study

2009 Best Practices Study

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

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

% of Agencies in Each Population Size

50.5%

24.2%

11.0%

14.3%

Net Revenue Growth (Organic)

4.7%

0.0%

-3.9%

-7.0%

Pre-tax Profit

21.5%

16.6%

18.3%

13.4%

Pro Forma Pre-tax Profit

24.2%

22.2%

24.7%

22.6%

Operating Pre-tax Profit

6.5%

2.6%

0.2%

4.1%

Profitability as % of Net Revenues

EBITDA

24.1%

18.3%

20.5%

16.2%

Pro Forma EBITDA

26.9%

24.1%

26.9%

25.4%

“Rule of 20” Score

18.3

14.0

9.6

5.7

Revenue per Employee

$143,393

$155,959

$137,240

$159,719

Productivity

Compensation per Employee

$78,468

$94,778

$81,209

$102,928

Spread per Employee

$64,925

$61,181

$56,031

$56,792

Commercial P&C Producers

$98,666

$139,536

$130,850

$81,737

Personal P&C Producers

$41,452

$72,581

$62,333

$54,750

Pay Levels for Producer

Life & Health Producers

$73,433

$212,501

$62,550

$79,942

Multiline Producers

$112,352

$170,542

$110,025

$176,731

Commercial P&C CSRs

$41,558

$48,168

$42,397

$51,805

Personal P&C CSRs

$32,965

$37,804

$37,464

$42,315

Pay Levels for CSRs

Life & Health CSRs

$30,559

$38,755

$34,801

$43,061

Multiline CSRs

$31,268

$39,525

$32,894

$73,000

PL - National

3.6

3.7

3.8

4.5

PL - Regional

5.4

4.4

3.1

3.8

Number of Carriers

CL - National

5.8

7.6

5.9

6.9

CL - Regional

7.1

7.2

4.9

4.5

EB - All

13.9

19.7

16.9

17.5

Total PL Comms Placed

11.5%

19.0%

95.3%

7.7%

Service Center Use

Total CL Comms Placed

8.0%

6.3%

4.0%

4.6%

% of Agencies Making an Acquisition in the last 12 Mths

4.3%

9.1%

10.0%

7.7%

*Insufficient Data

121

2009 Best Practices Study | Appendix