2004 Best Practices Study

2004 BEST PRACTICES STUDY - APPENDIX

POPULATION DENSITY AGENCIES WITH REVENUES GREATER 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

13.5% 25.2% 27.9% 33.3%

Net Revenue Growth

13.3% 15.2% 18.5% 17.7%

Profitability as % of Net Revenues Pre-tax Profit

20.1% 16.1% 15.8% 13.7% 24.0% 22.4% 24.2% 20.6% 9.7% 6.7% 6.3% 3.4%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee Compensation per Employee

$127,298 $145,104 $153,585 $151,080 $73,471 $91,040 $98,517 $99,027 $53,827 $54,065 $55,068 $52,052

Spread per Employee

Pay Levels for Producers

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

$137,625 $189,261 $184,122 $179,286 $44,262 $54,890 $71,747 $74,322 $138,309 $137,476 $207,373 $161,471 $93,000 $139,529 $131,888 $182,624

Multiline Producers

Pay Levels for CSRs

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

$37,033 $40,196 $42,511 $47,240 $31,776 $31,817 $35,485 $38,988 $35,114 $37,462 $39,964 $46,383

Multiline CSRs

*

*

*

*

Number of Carriers PL - National

6.7 6.5

9.2 4.7

6.1 3.3

8.2 4.1

PL - Regional CL - National CL - Regional

15.9 14.7

16.9 16.3

22.6

30.8 15.5

8.1

Service Center Use

Total PL Commissions placed

in Carrier Service Centers

*

0.3

31.8% 28.9%

Total CL Commissions placed

in Carrier Service Centers

8.7% 0.0% 2.1% 3.1% *Insufficient Data

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