2008 Best Practices Study

2008 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

REGIONAL ANALYSIS Agencies with Revenues UNDER $5,000,000

Geographic Region:

Northeast

Southeast

Midwest

Southwest

West

% of Agencies Located in Each Region

28.1%

28.1%

22.9%

11.5%

9.4%

Net Revenue Growth (Organic)

2.4%

4.6%

5.9%

5.6%

1.5%

Pre-tax Profit

16.5%

16.6%

22.8%

27.3%

20.5%

Pro Forma Pre-tax Profit

25.8%

22.4%

22.1%

34.5%

29.5%

Profitability as % of Net Revenues

Operating Pre-tax Profit

3.9%

5.6%

4.0%

15.6%

8.7%

EBITDA

19.1%

18.9%

26.3%

28.3%

21.5%

Pro Forma EBITDA

27.4%

24.8%

25.8%

33.3%

30.6%

“Rule of 20” Score

16.6

18.2

20.7

26.1

18.1

Revenue per Employee

$133,335

$139,890

$143,092

$188,817

$156,757

Compensation per Employee

$82,423

$86,713

$77,590

$95,561

$92,152

Productivity

Spread per Employee

$50,911

$53,177

$65,502

$93,256

$64,604

Commercial P&C Producers

$133,571

$109,047

$86,311

$179,192

$99,959

Personal P&C Producers

$60,050

$52,144

$37,286

*

$38,013

Pay Levels for Producer

Life & Health Producers

$172,729

$109,153

$56,129

*

$75,287

Multiline Producers

$113,873

$106,605

$118,244

$163,255

*

Commercial P&C CSRs

$49,417

$42,750

$36,309

$41,202

$50,891

Personal P&C CSRs

$39,317

$32,738

$31,958

$32,351

$38,708

Pay Levels for CSRs

Life & Health CSRs

$38,649

$28,646

$31,232

*

$35,000

Multiline CSRs

$47,096

*

$31,727

*

*

PL - National

3.3

4.0

2.7

4.1

5.6

PL - Regional

6.7

3.4

5.6

3.9

3.2

Number of Carriers

CL - National

4.7

4.9

5.5

12.9

5.0

CL - Regional

9.0

5.7

7.0

11.3

5.1

EB - All

22.0

13.6

19.7

12.8

21.5

Total PL Comms Placed

20.5%

*

*

*

*

Service Center Use

Total CL Comms Placed

6.2%

3.0%

10.1%

4.7%

5.5%

% of Agencies Making an Acquisition in the last 12 Mths

7.4%

3.7%

4.5%

9.1%

11.1%

*Insufficient Data

123

2008 Best Practices Study | Appendix

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