2013 Best Practices Study
2013 Best Practices Study
Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability 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 Where Home Office is Located:
% of Agencies Located in Each Region
19.9% 15.7%
6.5%
10.2%
Net Revenue Growth (Organic)
8.1%
8.6%
7.6%
12.1%
Pre-tax Profit
21.5% 21.0% 24.7% 18.3%
Pro Forma Pre-tax Profit
26.6% 26.7% 28.2% 23.7%
Profitability as % of Net Revenues
Operating Pre-tax Profit
13.8% 13.2% 17.0% 10.5%
EBITDA
25.3% 24.2% 25.3% 21.5%
Pro Forma EBITDA
30.4% 29.8% 28.8% 26.8%
Value Creation “Rule of 20” Score
23.4
23.7
24.4
25.8
Revenue per Employee
$132,765
$140,429
$149,912
$143,372
Productivity
Compensation per Employee
$72,608
$78,815
$78,589
$86,537
Spread per Employee
$60,157
$61,614
$71,323
$56,834
Commercial P&C
$88,671
$103,569
$110,298
$154,926
Personal P&C
$46,098
$52,535
$56,009
$74,471
Pay Levels for Producers
Life & Health / Financial
$83,593
$68,723
$90,270
$95,024
Multiline
$76,603
$102,136
$135,673
$149,760
Commercial P&C
3.3
4.8
4.8
6.4
Total Number of Service / Sales Support Staff per Line of Business
Personal P&C
3.6
3.5
2.1
3.5
Group Life & Health
1.0
1.0
1.5
1.1
Multiline
3.0
*
*
*
Commercial P&C
17.9% 20.0% 19.4% 25.8%
Total Service / Sales Support
Personal Lines
22.3% 22.5% 19.4% 27.8%
Staff Payroll as % of LOB Revenue
Group Life & Health
29.2% 20.6% 21.7% 30.8%
Multiline
25.2%
*
*
*
Personal Lines
11
13
16
17
Number of Carriers
Commercial Lines
11
23
21
25
Life & Health
7
12
6
11
Total PL Comms Placed (as % of PL Revenues) Total CL Comms Placed (as % of CL Revenues)
*
36.6% 20.3% 43.7%
Service Center Use
2013 Best Practices Study
13.9%
5.6%
10.8% 13.6%
% of Agencies Making an Acquisition in the last 12 Months
11.6%
8.8%
7.1%
13.6%
195
*Insufficient Data
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