2006 Best Practices Study

2006 BEST PRACTICES STUDY - APPENDIX

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

Northeast

Southeast

Midwest

Southwest

West

23.1% 24.0% 25.9% 12.0% 14.8%

% of Agencies Located in each Region

Growth

Net Revenue Growth

8.4% 8.5% 7.9% 7.3% 10.8%

Profitability as % of Net Revenues Pre-tax Profit

17.5% 15.4% 15.0% 17.5% 13.0% 25.2% 21.1% 20.9% 24.0% 18.4% 3.3% 6.6% 1.3% 6.2% 2.4%

Pro Forma Pre-tax Profit Operating Pre-tax Profit

Productivity

Revenue per Employee

$153,479 $152,474 $146,667 $156,279 $161,370 $94,239 $100,699 $95,481 $99,639 $105,681 $59,239 $51,775 $51,186 $56,639 $55,689

Compensation per Employee

Spread per Employee

Pay Levels for Producers

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

$163,152 $219,698 $178,172 $199,879 $186,936

$61,551 $89,783 $63,884 $80,459

*

$205,813 $214,680 $148,434 $139,987 $163,004 $197,400 $169,016 $157,781 $130,984 $204,806

Multiline Producers

Pay Levels for CSRs

Commercial P&C CSRs Personal P&C CSRs

$47,630 $46,544 $42,574 $50,241 $54,256 $37,699 $36,428 $34,786 $38,680 $42,200 $45,995 $45,623 $40,533 $47,787 $53,283

Life & Health CSRs

Multiline CSRs

*

*

*

*

*

Number of Carriers PL - National

7.5 7.2

8.1 4.2

5.6 7.7

5.1 2.8

8.8 3.6

PL - Regional CL - National CL - Regional

22.0 10.7 21.8

26.1 13.3 28.3

12.0 14.4 43.0

11.5

34.4 22.7 40.0

9.2

EB - All

27.5

Service Center Use

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

25.6% 20.6% 15.7% 30.4% 36.5%

6.0% 2.7% 3.4% 2.8% 3.9%

% of Agencies Making an Acquisition in the Last 12 Months

16.0% 11.5% 17.9% 38.5% 37.5% *Insufficient Data

2006 Best Practices Study

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