2004 Best Practices Study

2004 BEST PRACTICES STUDY - APPENDIX

POPULATION DENSITY AGENCIES WITH REVENUES LESS THAN $2,500,000

Less than 500,000

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

% of Agencies Located in Each Population Size

51.2% 23.3% 16.3% 9.3%

Net Revenue Growth

15.4% 10.4% 16.5% 21.0%

Profitability as % of Net Revenues Pre-tax Profit

21.2% 15.3% 24.7% 13.0% 27.1% 27.8% 28.8% 21.4% 10.2% 4.7% 16.7% 3.4%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee Compensation per Employee

$102,528 $119,748 $119,007 $142,234 $54,385 $68,656 $60,579 $89,463 $48,143 $51,092 $58,428 $52,772

Spread per Employee

Pay Levels for Producers

Commercial P&C Producers Personal P&C Producers Life & Health Producers

$68,823 $98,208 $84,000 $124,716

$40,641 $46,660 $41,001 $66,984 $74,978 $73,000

* *

Multiline Producers

$59,357 $136,557 $83,750 $137,777

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs Life & Health CSRs

$31,609 $39,746 $40,167 $42,063 $27,947 $33,056 $35,090 $36,473 $23,567 $35,333 $23,125 $25,375 $26,441 $31,667 $40,400 $48,000

Multiline CSRs

Number of Carriers PL - National

2.9 4.0 2.7 4.5

3.0 3.7 4.8 4.3

2.1 3.1 2.5 4.0

2.3 2.8 4.8 3.9

PL - Regional CL - National CL - Regional

Service Center Use

Total PL Commissions placed

in Carrier Service Centers

30.5%

*

0.4%

*

Total CL Commissions placed

in Carrier Service Centers

*

0.1% 0.2% 3.1% *Insufficient Data

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