2014 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Key Benchmarks

Profile

Revenues

Key Benchmarks at a Glance

Expenses

Average

+25% Profit

+25% Growth

Profitability

Growth Organic Growth By Line of Business* Commercial P&C

Employee Overview

1.8%

-12.7%

9.2%

Producer Info

Personal P&C

4.1%

2.7%

9.0%

Service Staff Info

Group Medical

-6.2%

-28.4%

-9.8%

Technology

All Other Group

-9.3%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

4.6%

1.4%

14.1%

Insurance Carriers

Appendix

26.1%

48.3%

27.1%

Pro Forma EBITDA

29.0%

48.6%

30.1%

Rule of 20 Score

18.2

24.1

23.5

Financial

Average

Top 25%

Current Ratio

1.53:1

2.82:1

Receivable/Payable Ratio

62.4%

12.3%

Accounts Receivables > 60 Days

48.5%

*

Accounts Receivables > 90 Days

4.2%

0.0%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$135,346

$214,865

$135,198

Compensation per Employee

$66,272

$78,802

$63,149

Spread per Employee

$69,074

$136,063

$72,049

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$33,020

$64,733

Personal P&C

$25,231

$43,224

2014 Best Practices Study

Life & Health/Financial

*

*

Service Staff Total Payroll as % of Line of Business Revenue Average

Agencies with Revenues Under $1,250,000

# of Service Staff

Commercial P&C

25.5%

1.8

Personal P&C

25.8%

2.0

Group Life & Health/Financial

29.7

0.5

*Insufficient Data

3

*Excludes any acquired revenue