2011 Best Practices Study

2011 Best Practices Study

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service 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 Where Home Office is Located:

% of Agencies Located in Each Region

3.4% 11.6% 16.4% 15.9%

Net Revenue Growth (Organic)

-0.8%

0.8%

1.9%

1.5%

Pre-tax Profit

12.8%

9.9% 15.8% 12.4%

Pro Forma Pre-tax Profit

16.1% 14.0% 18.6% 15.9%

Profitability as % of Net Revenues

Operating Pre-tax Profit

3.5%

0.0%

5.2%

3.7%

EBITDA

19.7% 14.2% 18.5% 16.0%

Pro Forma EBITDA

23.0% 18.3% 21.2% 19.5%

Value Creation “Rule of 20” Score

10.7

9.9

12.5

11.2

Revenue per Employee

$126,900

$153,942

$173,566

$185,686

Productivity

Compensation per Employee

$76,312

$103,366

$112,559

$124,534

Spread per Employee

$50,587

$50,576

$61,007

$61,153

Commercial P&C 

$100,621

$212,423

$205,054

$214,918

Personal P&C 

*

$62,143

$92,093

$127,397

Pay Levels for Producers

Life & Health / Financial

$122,296

$194,323

$232,069

$244,420

Multiline

$62,636

$241,923

$211,634

$284,623

Commercial P&C 

$47,464

$48,818

$50,406

$58,456

Pay Levels for Service / Sales Support Staff

Personal P&C 

$43,081

$41,378

$41,089

$49,590

Life & Health / Financial

$37,673

$49,674

$52,884

$56,119

Multiline

*

*

*

*

Commercial P&C

$65,559

$80,104

$85,543

$95,485

Pay Levels for Account Execs

Personal Lines

*

*

$69,535

$66,714

Life & Health / Financial

$58,296

$85,912

$93,733

$87,002

PL - National

14.4

7.7

11.2

9.0

PL - Regional

9.6

11.0

9.3

3.8

Number of Carriers

CL - National

32.6

23.8

30.1

35.9

CL - Regional

14.0

22.3

24.7

14.0

EB - All

28.9

39.9

52.6

55.6

Total PL Comms Placed

*

23.8% 30.7% 18.7%

2011 Best Practices Study

Service Center Use

Total CL Comms Placed

10.7%

3.7%

2.4%

2.1%

% of Agencies Making an Acquisition in the last 12 Months

28.6% 20.8%

8.8% 21.2%

147

*Insufficient Data