2012 Best Practices Study

2012 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

12.5% 12.0% 12.5% 5.7% 6.8%

Net Revenue Growth (Organic)

2.7% 1.8% 2.6% 4.6% 4.0%

Pre-tax Profit

21.9% 19.1% 21.9% 26.9% 17.2%

Pro Forma Pre-tax Profit

24.7% 22.7% 24.7% 31.9% 20.9%

Profitability as % of Net Revenues

Operating Pre-tax Profit

9.9% 10.5% 9.9% 17.3% 9.9%

EBITDA

24.5% 22.0% 24.5% 29.0% 19.9%

Pro Forma EBITDA

27.5% 25.6% 27.5% 34.0% 23.6%

Value Creation “Rule of 20” Score

15.8

15.3

15.8

24.3

17.1

Revenue per Employee $145,667 $134,507 $145,667 $158,230 $132,096 Compensation per Employee $82,530 $79,926 $82,530 $80,343 $77,940 Spread per Employee $63,137 $54,580 $63,137 $77,887 $54,157

Productivity

Commercial P&C 

$139,391 $139,722 $103,071 $129,342 $115,082

Personal P&C 

$63,705 $60,382 $59,656 $54,556 $53,971

Pay Levels for Producers

Life & Health / Financial

$154,499 $90,117 $76,083 $116,090 $94,577

Multiline

$98,571 $110,126 $105,265 $89,616 $96,133

Commercial P&C 

$42,464 $46,811 $37,271 $42,311 $51,189

Pay Levels for Service / Sales Support Staff

Personal P&C 

$39,509 $38,526 $33,921 $32,778 $35,583

Life & Health / Financial

$39,824 $28,734 $33,993

*

$36,381

Multiline

$33,062 $27,167 $29,375

*

$30,850

Commercial P&C

$64,867 $55,314 $52,925 $49,872 $54,952

Pay Levels for Account Execs

Personal Lines

$48,001 $38,935 $39,348 $36,164 $41,167

Life & Health / Financial

$41,954 $37,000 $65,454 $34,988

*

PL - National

3.4

6.7

3.4

5.9

6.8

PL - Regional

5.2

4.5

5.2

4.8

2.2

Number of Carriers

CL - National

8.1

9.5

8.1

11.0

8.6

CL - Regional

6.7

11.9

6.7

4.8

4.6

EB - All

7.3

9.0

7.3

5.7

11.8

Total PL Comms Placed

40.4% 14.6% 40.4%

*

28.7%

2012 Best Practices Study

Service Center Use

Total CL Comms Placed

16.7% 7.7% 16.7%

*

2.5%

% of Agencies Making an Acquisition in the last 12 Months

4.2% 4.3% 4.2% 9.0% 0.0%

148

*Insufficient Data