2004 Best Practices Study

2004 BEST PRACTICES STUDY - APPENDIX

REGIONAL ANALYSIS AGENCIES WITH REVENUES LESS THAN $2,500,000

Northeast

Southeast

Midwest

Southwest

West

% of Agencies Located in each Region

8.6% 9.7% 15.7% 4.6% 5.1%

Growth

Net Revenue Growth

12.4% 16.5% 19.2% 7.2% 10.0%

Profitability as % of Net Revenues Pre-tax Profit

11.8% 24.6% 20.6% 18.2% 21.9% 23.9% 32.4% 24.5% 25.7% 30.6% 1.2% 13.9% 10.1% 10.7% 10.3%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee Compensation per Employee

$102,345 $117,785 $106,522 $137,129 $119,604 $65,531 $61,993 $57,554 $71,856 $60,711 $36,814 $55,792 $48,968 $65,273 $58,893

Spread per Employee

Pay Levels for Producers

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

$74,316 $80,269 $81,502 $149,346 $60,750

$44,983 $39,460 $49,760 $107,227 $62,885 $53,675

* *

$24,750

* *

Multiline Producers

$70,249 $93,334 $79,338 $94,972

Pay Levels for CSRs

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

$41,656 $39,196 $29,683 $34,545 $38,500 $33,293 $32,553 $28,525 $29,715 $31,256

$31,058 $27,700 $21,750 $23,549

* *

Multiline CSRs

$39,500 $34,104 $31,256

*

Number of Carriers PL - National

2.8 4.0 1.8 4.1

3.3 3.1 4.1 3.9

1.7 4.9 2.0 5.5

3.3 2.0 8.6 4.4

4.0 2.2 4.2 1.6

PL - Regional CL - National CL - Regional

Service Center Use

Total PL Commissions placed in Carrier Service Centers Total CL Commissions placed in Carrier Service Centers

*

*

28.8%

*

*

0.1% 5.2% 16.5%

*

7.5%

% of Agencies Making an Acquisition in the Last 12 Months

0.0% 0.0% 9.7% 0.0% 0.0% *Insufficient Data

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