2011 Best Practices Study

2011 Best Practices Study

Key Benchmarks Profile

Regional Analysis Agencies with Revenues UNDER $5,000,000

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

Geographic Region:

Northeast Southeast Midwest Southwest

West

% of Agencies Located in Each Region

13.0% 12.1% 13.0% 6.8% 7.7%

Net Revenue Growth (Organic)

-0.4% -1.1% 1.2% 3.0% -4.7%

Pre-tax Profit

15.6% 17.9% 22.0% 25.1% 13.3%

Pro Forma Pre-tax Profit

20.1% 23.0% 23.8% 28.0% 24.2%

Profitability as % of Net Revenues

Operating Pre-tax Profit

6.6% 7.7% 9.8% 13.6% 6.9%

EBITDA

18.3% 20.9% 25.3% 27.3% 15.7%

Pro Forma EBITDA

22.8% 26.0% 27.2% 30.2% 26.6%

Value Creation “Rule of 20” Score

11.0

13.0

15.6

18.1

8.6

Revenue per Employee $122,046 $130,336 $143,885 $152,318 $137,485 Compensation per Employee $73,782 $77,119 $82,395 $79,968 $90,719 Spread per Employee $48,264 $53,217 $61,490 $72,350 $46,766

Productivity

Commercial P&C 

$126,018 $135,560 $116,468 $134,193 $116,710

Personal P&C 

$66,136 $60,389 $59,651 $55,589 $64,221

Pay Levels for Producers

Life & Health / Financial

$255,936 $92,469 $72,567 $90,236 $105,229

Multiline

$117,120 $105,551 $99,380 $131,413 $82,300

Commercial P&C 

$43,638 $41,848 $38,990 $38,140 $41,566

Pay Levels for Service / Sales Support Staff

Personal P&C 

$37,880 $34,855 $34,550 $32,202 $33,864

Life & Health / Financial

$37,314 $33,746 $35,970

*

*

Multiline

$43,156 $27,117 $36,672

*

$38,033

Commercial P&C

$67,637 $62,811 $53,461 $45,797 $57,182

Pay Levels for Account Execs

Personal Lines

$49,524 $39,069 $42,943 $36,148 $38,696

Life & Health / Financial

$47,180

*

$53,000 $40,319 $48,690

PL - National

4.4

5.0

4.2

5.4

6.7

PL - Regional

6.1

4.3

4.0

4.0

2.6

Number of Carriers

CL - National

4.6

6.8

7.5

6.6

7.7

CL - Regional

6.0

9.9

6.2

5.9

4.1

EB - All

7.9

8.5

7.6

5.6

10.8

Total PL Comms Placed

*

*

61.9%

*

45.2%

2011 Best Practices Study

Service Center Use

Total CL Comms Placed

7.8% 5.8% 31.8% 4.8% 23.6%

% of Agencies Making an Acquisition in the last 12 Months

11.1% 0.0% 7.4% 0.0% 12.5%

148

*Insufficient Data