2015 Best Practices Study

2015 Best Practices Study

Key Benchmarks Profile

Population Density Agencies with Revenues UNDER $5,000,000

Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

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 Population

19.5% 12.8%

6.7%

9.7%

Net Revenue Growth (Organic)

8.5%

6.5%

10.1%

9.3%

Pre-tax Profit

24.5% 21.7% 19.6% 21.4%

Pro Forma Pre-tax Profit

29.2% 25.2% 24.9% 25.6%

Profitability as % of Net Revenues

Operating Pre-tax Profit

16.8% 14.5%

9.9%

14.9%

EBITDA

27.4% 24.5% 23.6% 23.6%

Pro Forma EBITDA

32.1% 28.0% 29.3% 27.8%

Value Creation “Rule of 20” Score

24.0

21.5

21.3

24.4

Revenue per Employee

$140,646

$157,247

$160,027

$154,956

Productivity

Compensation per Employee

$71,448

$86,335

$90,210

$91,923

Spread per Employee

$69,198

$70,912

$69,817

$63,033

Commercial P&C

$80,429

$144,615

$92,395

$152,071

Personal P&C

$49,795

$60,967

*

$76,271

Pay Levels for Producers

Group Life & Health / Financial

$87,327

$84,843

$74,871

$123,606

Multi-Line

$108,497

$120,697

$171,769

$103,739

Commercial P&C

3.7

5.7

5.0

5.6

Total Number of Service / Sales Support Staff per Line of Business

Personal P&C

4.1

3.3

3.3

3.8

Group Life & Health

1.3

1.2

0.9

1.5

Multi-Line

*

*

*

*

Commercial P&C

19.2% 20.6% 15.5% 19.0%

Total Service / Sales Support Staff Payroll as % of LOB Revenue

Personal P&C

24.6% 24.4% 20.9% 22.9%

Group Life & Health / Financial

19.9% 14.9% 19.4% 24.0%

Multi-Line

*

*

*

*

Personal P&C

11.8

10.6

17.4

13.3

Number of Carriers

Commercial P&C

12.0

21.4

26.2

21.9

Group Life & Health / Financial

8.5

13.4

17.5

11.4

Total PL Comms Placed (as % of PL Revenues) Total CL Comms Placed (as % of CL Revenues)

34.9% 32.1%

*

18.9%

Service Center Use

2015 Best Practices Study

6.1%

2.2%

*

15.2%

% of Agencies Making an Acquisition in the last 12 Months

2.6%

4.0%

7.7%

15.8%

159

*Insufficient Data