2012 Best Practices Study

2012 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

19.3% 16.7%

5.7%

7.8%

Net Revenue Growth (Organic)

1.1%

1.7%

5.8%

2.2%

Pre-tax Profit

19.4% 16.8% 26.3% 26.4%

Pro Forma Pre-tax Profit

22.7% 21.4% 29.1% 22.0%

Profitability as % of Net Revenues

Operating Pre-tax Profit

11.0%

7.8% 12.2% 12.4%

EBITDA

22.3% 19.2% 28.8% 24.4%

Pro Forma EBITDA

25.7% 23.8% 31.6% 20.1%

Value Creation “Rule of 20” Score

15.1

14.5

20.0

17.1

Revenue per Employee

$123,827

$132,827

$157,980

$152,626

Productivity

Compensation per Employee

$70,558

$79,576

$82,847

$91,606

Spread per Employee

$53,269

$53,251

$75,062

$61,021

Commercial P&C 

$132,478

$101,954

$149,410

$139,306

Personal P&C 

$34,420

$55,026

$82,492

$84,354

Pay Levels for Producers

Life & Health / Financial

$79,368

$96,590

$129,954

$78,107

Multiline

$64,474

$111,831

$116,059

$137,281

Commercial P&C 

$41,529

$44,354

$43,209

$48,282

Pay Levels for Service / Sales Support Staff

Personal P&C 

$33,523

$36,677

$36,970

$44,976

Life & Health / Financial

$34,882

$34,793

$41,757

$33,536

Multiline

$29,895

*

*

$34,637

Commercial P&C

$47,636

$54,124

$58,274

$64,152

Pay Levels for Account Execs

Personal Lines

$38,247

$39,424

$54,994

$48,200

Life & Health / Financial

$53,475

$33,934

$48,609

$56,035

PL - National

4.8

5.7

4.8

5.6

PL - Regional

5.0

5.6

3.4

4.8

Number of Carriers

CL - National

5.1

9.1

10.5

10.9

CL - Regional

5.7

11.2

5.5

5.8

EB - All

7.6

11.1

7.5

8.9

Total PL Comms Placed

*

30.7% 20.4%

*

2012 Best Practices Study

Service Center Use

Total CL Comms Placed

7.3% 11.8%

8.4%

2.9%

% of Agencies Making an Acquisition in the last 12 Months

10.8%

3.1%

0.0%

0.0%

146

*Insufficient Data