2008 Best Practices Study

2008 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

POPULATION DENSITY Agencies with Revenues UNDER $5,000,000

Less than 50,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

50,000 to 250,000

% of Agencies in Each Population Size

47.9%

28.1%

11.5%

12.5%

Net Revenue Growth (Organic)

5.2%

4.3%

3.2%

1.0%

Pre-tax Profit

20.4%

18.5%

20.7%

17.8%

Pro Forma Pre-tax Profit

23.4%

25.1%

28.8%

27.4%

Operating Pre-tax Profit

6.8%

7.6%

3.3%

3.1%

Profitability as % of Net Revenues

EBITDA

23.1%

20.8%

23.4%

18.9%

Pro Forma EBITDA

26.4%

25.4%

31.4%

28.6%

“Rule of 20” Score

21.0

18.0

18.9

15.6

Revenue per Employee

$136,958

$151,401

$140,565

$172,720

Productivity

Compensation per Employee

$77,575

$87,306

$83,177

$109,460

Spread per Employee

$59,383

$64,094

$57,387

$63,261

Commercial P&C Producers

$99,572

$136,848

$166,702

$111,000

Personal P&C Producers

$35,374

$62,332

$66,526

$47,013

Pay Levels for Producer

Life & Health Producers

$75,994

$152,793

$135,060

$147,347

Multiline Producers

$96,987

$124,560

$110,802

$230,750

Commercial P&C CSRs

$39,673

$47,456

$40,626

$52,335

Personal P&C CSRs

$31,345

$36,942

$39,126

$42,975

Pay Levels for CSRs

Life & Health CSRs

$25,441

$36,402

$42,221

$41,167

Multiline CSRs

$29,787

$38,680

*

*

PL - National

3.5

3.5

3.7

4.4

PL - Regional

5.4

4.0

5.3

4.1

Number of Carriers

CL - National

5.1

7.4

5.1

6.3

CL - Regional

7.4

7.0

11.0

5.8

EB - All

15.4

21.3

22.7

17.9

Total PL Comms Placed

*

*

40.6%

*

Service Center Use

Total CL Comms Placed

5.2%

5.1%

6.4%

3.7%

% of Agencies Making an Acquisition in the last 12 Mths

4.3%

7.4%

0.0%

16.7%

*Insufficient Data

121

2008 Best Practices Study | Appendix