2011 Best Practices Study

2011 Best Practices Study

Key Benchmarks Profile

Population Density Agencies with Revenues UNDER $5,000,000

Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Less than 50,000

50,000 to 250,000

250,000 to 1,000,000

Over 1,000,000

Population Where Home Office is Located:

% of Agencies Located in Each Region

20.3% 16.2%

5.8% 10.1%

Net Revenue Growth (Organic)

-1.3%

1.4%

-3.1%

0.2%

Pre-tax Profit

19.5% 18.2% 21.2% 16.0%

Pro Forma Pre-tax Profit

22.7% 20.7% 26.2% 26.9%

Profitability as % of Net Revenues

Operating Pre-tax Profit

8.8%

9.2%

7.8%

7.4%

EBITDA

22.7% 20.8% 24.8% 17.9%

Pro Forma EBITDA

26.0% 23.3% 29.8% 28.8%

Value Creation “Rule of 20” Score

12.9

13.1

11.8

14.6

Revenue per Employee

$127,291

$132,926

$138,733

$154,297

Productivity

Compensation per Employee

$71,617

$79,162

$77,832

$99,161

Spread per Employee

$55,674

$53,763

$60,902

$55,136

Commercial P&C 

$121,226

$112,310

$153,025

$140,908

Personal P&C 

$44,114

$71,361

$75,863

$69,583

Pay Levels for Producers

Life & Health / Financial

$77,913

$148,448

$111,495

$126,897

Multiline

$88,338

$126,134

$104,184

$132,317

Commercial P&C 

$36,526

$43,031

$40,221

$47,630

Pay Levels for Service / Sales Support Staff

Personal P&C 

$30,860

$37,344

$37,037

$38,649

Life & Health / Financial

$37,675

$36,182

$34,121

$35,792

Multiline

$28,893

$44,092

*

*

Commercial P&C

$48,890

$61,709

$55,654

$72,312

Pay Levels for Account Execs

Personal Lines

$36,952

$45,043

*

$47,786

Life & Health / Financial

$47,842

$47,582

*

$50,408

PL - National

4.6

5.0

4.6

5.8

PL - Regional

4.5

5.2

2.9

3.8

Number of Carriers

CL - National

4.9

6.9

8.3

8.1

CL - Regional

5.6

8.3

7.5

5.5

EB - All

7.3

7.5

5.1

12.3

Total PL Comms Placed

*

56.3% 46.2% 49.1%

2011 Best Practices Study

Service Center Use

Total CL Comms Placed

5.2% 14.8% 24.7% 13.3%

% of Agencies Making an Acquisition in the last 12 Months

4.8%

8.8%

0.0%

9.5%

146

*Insufficient Data