2009 Best Practices Study

2009 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

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

Less than 50,000

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Density:

% of Agencies in Each Population Size

13.0%

19.6%

34.8%

32.6%

Net Revenue Growth (Organic)

2.6%

-2.9%

2.0%

1.5%

Pre-tax Profit

19.4%

10.9%

14.0%

15.7%

Pro Forma Pre-tax Profit

23.1%

13.3%

18.9%

19.7%

Operating Pre-tax Profit

7.2%

0.2%

3.1%

4.8%

Profitability as % of Net Revenues

EBITDA

22.6%

14.9%

16.8%

19.2%

Pro Forma EBITDA

26.3%

17.3%

20.7%

22.3%

“Rule of 20” Score

15.8

5.8

12.8

13.1

Revenue per Employee

$159,069

$156,761

$169,392

$189,527

Productivity

Compensation per Employee

$95,189

$104,463

$112,359

$122,023

Spread per Employee

$63,879

$52,299

$57,034

$67,504

Commercial P&C Producers

$175,673

$192,186

$224,221

$240,030

Personal P&C Producers

$58,554

$60,134

$98,983

$108,815

Pay Levels for Producer

Life & Health Producers

$159,911

$195,801

$227,504

$260,784

Multiline Producers

$147,304

$174,184

$261,961

$151,474

Commercial P&C CSRs

$54,521

$53,913

$52,760

$57,790

Personal P&C CSRs

$44,041

$42,252

$42,440

$45,414

Pay Levels for CSRs

Life & Health CSRs

$47,632

$52,089

$50,271

$59,667

Multiline CSRs

*

*

*

*

PL - National

10.3

10.3

9.3

8.1

PL - Regional

10.8

7.7

6.6

5.2

Number of Carriers

CL - National

23.6

28.1

30.6

29.1

CL - Regional

24.6

16.6

25.2

14.3

EB - All

40.6

49.1

56.4

46.3

Total PL Comms Placed

31.7%

29.9%

20.4%

40.6%

Service Center Use

Total CL Comms Placed

6.9%

3.1%

3.0%

1.2%

% of Agencies Making an Acquisition in the last 12 Mths

33.3%

22.2%

21.9%

26.7%

*Insufficient Data

122

2009 Best Practices Study | Appendix