2010 Best Practices Study
2010 Best Practices Study
Mgmt. Perspectives
Population Density Agencies with Revenues UNDER $5,000,000
Profile
Revenues
Expenses
Less than 50,000
50,000 to 250,000
250,000 to 1,000,000
Over 1,000,000
Profitability
Geographic Region:
% of Agencies Located in Each Region
24.6% 12.5%
7.1%
9.8%
Employee Overview
Net Revenue Growth (Organic)
1.2%
-1.2%
1.9%
0.0%
Producer Info
Pre-tax Profit
19.1% 18.4% 21.6% 17.5%
Staff Service Info
Pro Forma Pre-tax Profit
23.4% 21.3% 25.0% 26.1%
Profitability as % of Net Revenues
Technology
Operating Pre-tax Profit
8.3%
6.5%
8.1%
8.2%
EBITDA
22.6% 20.5% 25.1% 19.6%
Insurance Carriers
Pro Forma EBITDA
26.9% 23.4% 28.5% 28.1%
Appendix
Value Creation “Rule of 20” Score
15.1
10.5
16.2
14.1
Revenue per Employee
$130,983
$135,153
$148,500
$156,627
Productivity
Compensation per Employee
$74,250
$77,142
$85,160
$101,053
Spread per Employee
$56,732
$58,011
$63,340
$55,574
Commercial P&C
$87,879
$100,162
$146,434
$136,740
Personal P&C
$45,838
$61,750
$74,516
$67,574
Pay Levels for Producers
Life & Health / Financial
$63,037
$140,902
$176,451
$84,271
Multiline
$101,496
$110,411
$118,726
$156,625
Commercial P&C
$48,209
$44,388
$42,125
$47,692
Pay Levels for Service / Sales Support Staff
Personal P&C
$33,479
$38,329
$35,939
$40,143
Life & Health / Financial
$30,176
$37,584
$44,604
$38,877
Multiline
$31,592
$45,761
*
*
Commercial P&C
$56,250
$53,180
$62,235
$66,433
Pay Levels for Account Execs
Life & Health / Financial
$47,678
*
*
$47,140
PL - National
3.8
4.1
5.4
6.3
PL - Regional
5.0
4.4
2.4
3.3
Number of Carriers
CL - National
5.1
7.8
11.1
11.6
CL - Regional
6.2
5.9
6.4
5.4
EB - All
9.2
5.6
11.0
9.5
Total PL Comms Placed
34.3% 54.3% 51.8% 33.6%
Service Center Use
Total CL Comms Placed
13.5% 10.3% 14.1%
4.7%
2010 Best Practices Study
% of Agencies Making an Acquisition in the last 12 Months
7.3%
0.0% 12.5% 20.0%
182
*Insufficient Data
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