2006 Best Practices Study

2006 BEST PRACTICES STUDY - APPENDIX

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

Northeast

Southeast

Midwest

Southwest

West

24.2% 24.2% 30.3% 9.0% 12.1%

% of Agencies Located in each Region

Growth

Net Revenue Growth

9.5% 4.0% 5.9% 9.4% 8.3%

Profitability as % of Net Revenues Pre-tax Profit

12.5% 19.0% 24.9% 18.6% 28.9% 22.1% 30.8% 33.5% 31.3% 32.2% 1.9% 8.3% 14.1% 8.9% 20.9%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$117,948 $132,116 $123,763 $180,405 $135,496 $72,035 $76,234 $63,670 $101,144 $63,451 $45,914 $55,882 $60,093 $79,261 $72,045

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$85,044 $102,364 $65,758 $98,835 $72,967

$48,899 $38,483 $45,978 $88,958 $72,500 $64,226 $67,950 $122,391 $103,852

* * *

$26,667

*

Multiline Producers

$63,500

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$46,196 $42,421 $31,344 $41,875 $42,875 $36,018 $33,078 $29,784 $31,304 $30,600

Life & Health CSRs

$32,217

*

$18,386 $31,000

* *

Multiline CSRs

$33,755 $32,850 $33,346

*

Number of Carriers PL - National

2.9 4.8 2.6 4.4 7.6

3.6 3.1 4.4 5.1 5.8

1.5 4.9 2.0 4.8

3.0 1.5

3.9 1.9 4.6 1.4 5.8

PL - Regional CL - National CL - Regional

12.3

5.3 4.5

EB - All

11.3

Service Center Use

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

*

*

*

*

*

0.0% 1.4%

*

*

*

% of Agencies Making an Acquisition in the Last 12 Months

6.3% 12.5% 0.0% 0.0% 0.0% *Insufficient Data

2006 Best Practices Study

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