2009 Best Practices Study

2009 Best Practices Study

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

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

Geographic Region:

Northeast

Southeast

Midwest

Southwest

West

% of Agencies in Each Population Size

26.1%

31.5%

16.3%

10.9%

15.2%

Net Revenue Growth (Organic)

1.0%

-1.1%

1.6%

2.0%

4.0%

Pre-tax Profit

16.6%

12.7%

13.3%

12.5%

18.2%

Pro Forma Pre-tax Profit

20.2%

16.9%

16.6%

18.3%

21.7%

Profitability as % of Net Revenues

Operating Pre-tax Profit

4.3%

3.4%

1.3%

1.5%

6.9%

EBITDA

21.2%

15.6%

16.6%

14.3%

21.2%

Pro Forma EBITDA

23.7%

19.8%

19.9%

20.1%

22.6%

“Rule of 20” Score

13.4

8.8

11.5

12.0

16.3

Revenue per Employee

$176,045

$160,871

$167,550

$187,310

$182,872

Productivity

Compensation per Employee

$107,786

$107,559

$112,807

$129,869

$112,991

Spread per Employee

$68,259

$53,312

$54,743

$57,441

$69,880

Commercial P&C Producers

$183,685

$225,486

$215,630

$247,445

$234,867

Personal P&C Producers

$50,392

$100,318

$68,798

$76,571

$148,922

Pay Levels for Producer

Life & Health Producers

$181,205

$220,908

$258,882

$251,421

$228,657

Multiline Producers

$156,045

$294,081

$237,500

$152,554

$143,450

Commercial P&C CSRs

$59,251

$51,949

$50,117

$55,833

$57,715

Personal P&C CSRs

$46,071

$41,332

$41,243

$44,535

$46,684

Pay Levels for CSRs

Life & Health CSRs

$53,623

$49,292

$51,779

$51,940

$64,624

Multiline CSRs

$47,808

*

*

*

*

PL - National

8.6

9.3

10.2

10.2

8.4

PL - Regional

8.2

7.6

6.1

4.0

6.3

Number of Carriers

CL - National

19.0

35.3

23.6

36.0

31.8

CL - Regional

15.6

19.0

35.5

9.5

19.6

EB - All

47.2

47.0

56.4

53.1

50.5

Total PL Comms Placed

31.2%

16.8%

6.8%

*

64.5%

Service Center Use

Total CL Comms Placed

5.0%

2.6%

0.7%

1.1%

2.6%

% of Agencies Making an Acquisition in the last 12 Mths

20.8%

27.6%

20.0%

10.0%

42.9%

*Insufficient Data

124

2009 Best Practices Study | Appendix