2006 Best Practices Study

2006 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:

56.1% 22.7% 9.1% 12.1%

% of Agencies Located in Each Population Size

7.2% 5.1% 1.0% 13.4%

Net Revenue Growth

Profitability as % of Net Revenues Pre-tax Profit

21.3% 18.2% 28.1% 14.4% 28.9% 29.2% 40.4% 26.6% 10.4% 9.0% 22.0% 1.5%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$115,416 $144,381 $121,594 $184,628 $63,399 $78,677 $49,604 $117,080 $52,017 $65,704 $71,990 $67,548

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$72,856 $100,755 $50,000 $147,000

$38,194 $37,850 $47,075

* *

$73,568 $76,667 $86,434 $122,030

*

Multiline Producers

* $139,384

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$37,695 $40,369

*

$55,245

$30,761 $33,415 $30,738 $40,581

Life & Health CSRs

$24,594 $31,667 $28,045 $33,774

* *

* *

Multiline CSRs

Number of Carriers PL - National

2.9 4.0 3.4 4.5 7.4

2.7 3.7 6.2 4.9 7.2

2.7 3.8 1.3 3.0 7.7

2.5 2.8 4.4 3.9 9.9

PL - Regional CL - National CL - Regional

EB - All

Service Center Use

Total PL Commissions placed

in Carrier Service Centers

*

*

*

*

Total CL Commissions placed

in Carrier Service Centers

4.0% 0.0%

* 2.7% *Insufficient Data

2006 Best Practices Study

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