2014 Best Practices Study
2014 Best Practices Study
Key Benchmarks
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
Population Where Home Office is Located:
Profitability
% of Agencies Located in Each Population
20.4% 13.6%
6.4%
10.7%
Employee Overview
Net Revenue Growth (Organic)
7.3%
7.1%
7.4%
9.3%
Producer Info
Pre-tax Profit
22.0% 23.2% 21.9% 19.4%
Service Staff Info
Pro Forma Pre-tax Profit
27.2% 27.4% 23.8% 24.1%
Technology
Profitability as % of Net Revenues
Operating Pre-tax Profit
14.3% 15.3% 14.7% 12.1%
Insurance Carriers Appendix
EBITDA
25.2% 25.9% 24.6% 21.4%
Pro Forma EBITDA
30.3% 30.1% 26.5% 26.1%
Value Creation “Rule of 20” Score
21.3
20.8
19.3
21.0
Revenue per Employee
$139,349
$157,872
$161,489
$148,180
Productivity
Compensation per Employee
$74,872
$83,587
$88,089
$90,925
Spread per Employee
$64,476
$74,285
$73,400
$57,255
Commercial P&C
$101,761
$137,256
$106,136
$160,844
Personal P&C
$43,516
$74,348
$63,333
$60,023
Pay Levels for Producers
Life & Health / Financial
$64,598
$74,645
*
$107,141
Multi-Line
$99,545
$138,829
$140,436
$148,890
Commercial P&C
3.6
5.6
5.3
6.5
Total Number of Service / Sales Support Staff per Line of Business
Personal P&C
4.1
4.0
2.4
3.3
Group Life & Health
1.3
1.1
*
0.9
Multi-Line
2.3
*
*
*
Commercial P&C
18.5% 20.6% 21.7% 24.7%
Total Service / Sales Support
Personal Lines
22.6% 23.1% 21.7% 30.9%
Staff Payroll as % of LOB Revenue
Group Life & Health
59.1% 26.3%
*
27.6%
Multi-Line
20.2%
*
*
*
Personal Lines
11.2
11.3
15.6
12.2
Number of Carriers
Commercial Lines
11.9
22.8
20.2
23.9
Life & Health
7.5
13.2
7.2
15.2
Total PL Comms Placed (as % of PL Revenues) Total CL Comms Placed (as % of CL Revenues)
*
44.8% 25.6%
*
Service Center Use
2014 Best Practices Study
12.9%
8.6%
26.0% 13.6%
% of Agencies Making an Acquisition in the last 12 Months
16.7%
3.6%
0.0%
18.2%
159
*Insufficient Data
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