2004 Best Practices Study

2004 BEST PRACTICES STUDY - APPENDIX

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

Northeast

Southeast

Midwest

Southwest

West

% of Agencies Located in each Region

13.2% 13.7% 12.2% 7.6% 9.6%

Growth

Net Revenue Growth

19.3% 13.7% 15.5% 18.4% 17.8%

Profitability as % of Net Revenues Pre-tax Profit

17.8% 15.0% 14.3% 22.0% 11.0% 25.8% 21.3% 19.1% 28.7% 19.2% 7.1% 7.0% 4.5% 10.2% 1.4%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee Compensation per Employee

$144,884 $153,481 $142,031 $146,328 $147,834 $87,470 $99,069 $92,370 $88,483 $98,737 $57,415 $54,412 $49,661 $57,844 $49,096

Spread per Employee

Pay Levels for Producers

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

$132,934 $208,433 $186,502 $151,224 $197,703 $55,483 $68,578 $69,307 $76,803 $47,696 $177,215 $196,823 $148,557 $151,092 $138,885 $107,374 $154,402 $140,903 $168,829 $156,258

Multiline Producers

Pay Levels for CSRs

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

$43,435 $41,202 $41,240 $44,043 $45,615 $35,074 $35,859 $33,442 $33,450 $37,369 $39,813 $43,654 $39,781 $38,696 $41,766

Multiline CSRs

*

*

*

*

*

Number of Carriers PL - National

7.3 6.5

9.9 3.6

4.8 4.9

7.2 3.6

8.9 2.5

PL - Regional CL - National CL - Regional

17.2

22.2 19.0

12.7 11.9

33.9 12.7

36.7 14.9

8.7

Service Center Use

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

28.9% 19.4% 23.3% 38.7% 44.1%

3.3% 6.3% 1.4% 3.1% 2.9%

% of Agencies Making an Acquisition in the Last 12 Months

19.2% 22.2% 12.5% 26.7% 31.6% *Insufficient Data

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