2012 Best Practices Study

2012 Best Practices Study

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

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

Geographic Region:

Northeast Southeast Midwest Southwest

West

% of Agencies Located in Each Region

13.0% 11.5% 9.4% 8.3% 8.3%

Net Revenue Growth (Organic)

2.9% 4.2% 5.9% 4.8% 4.0%

Pre-tax Profit

14.0% 14.2% 8.2% 13.8% 12.2%

Pro Forma Pre-tax Profit

17.8% 16.4% 10.6% 17.4% 19.1%

Profitability as % of Net Revenues

Operating Pre-tax Profit

5.4% 6.8% 0.8% 5.0% 5.0%

EBITDA

19.3% 16.7% 12.7% 15.4% 14.6%

Pro Forma EBITDA

23.1% 18.9% 15.1% 18.9% 21.5%

Value Creation “Rule of 20” Score

14.9

13.2

15.0

15.1

15.5

Revenue per Employee $171,084 $159,126 $171,572 $178,425 $194,888 Compensation per Employee $106,272 $106,906 $121,376 $120,821 $131,557 Spread per Employee $64,811 $52,220 $50,196 $57,604 $63,330

Productivity

Commercial P&C 

$158,271 $211,113 $222,355 $203,542 $208,438

Personal P&C 

$52,005 $82,815 $68,567 $95,985 $70,215

Pay Levels for Producers

Life & Health / Financial

$138,934 $216,984 $234,393 $202,618 $205,717

Multiline

$96,618 $283,779 $174,228 $172,070 $143,398

Commercial P&C 

$53,527 $48,779 $49,377 $49,176 $55,885

Pay Levels for Service / Sales Support Staff

Personal P&C 

$42,952 $41,391 $43,134 $42,496 $52,990

Life & Health / Financial

$51,812 $49,350 $47,596 $47,350 $55,462

Multiline

$52,111

*

*

*

$37,604

Commercial P&C

$93,164 $92,376 $84,755 $76,223 $96,544

Pay Levels for Account Execs

Personal Lines

$63,065 $65,946 $56,592 $55,775 $59,677

Life & Health / Financial

$75,757 $96,431 $88,066 $69,527 $101,822

PL - National

9.3

16.7

7.9

10.7

16.7

PL - Regional

10.6

13.9

9.8

5.8

7.3

Number of Carriers

CL - National

23.7

42.7

22.0

37.8

46.5

CL - Regional

19.7

38.9

26.6

12.9

17.4

EB - All

34.3

81.6

56.5

34.4

71.2

Total PL Comms Placed

27.4% 20.1% 2.7% 33.9% 33.8%

2012 Best Practices Study

Service Center Use

Total CL Comms Placed

9.3% 1.7% 0.7% 2.2% 4.9%

% of Agencies Making an Acquisition in the last 12 Months

24.0% 13.6% 33.3% 6.3% 18.8%

149

*Insufficient Data