Agencies Improve Bottom Line
NU Online News Service, Dec. 30, 3:35 p.m. EST?In its annual report tracking independent agency performance, the Academy of Producer Insurance Studies said it found agencies saw signs of improvement to their bottom line and some continued to grow through mergers and acquisitions.
In the latest edition of the "Growth and Performance Standards," some of the study's recent findings highlighted in a statement by the Austin, Texas-based association were that:
? On average, total agency revenues grew 10 percent, compared to an increase of 8 percent in 1999.
? Eleven percent of all surveyed agencies purchased or merged with another agency within the past year.
? Average pre-tax profit is now 9.8 percent, up from 7.42 percent in 1999.
? The average agency achieves revenues per person of $96,334, a 17 percent increase from 1999.
? The average commercial lines commission per account is $886, up from $763 in 1999.
? Commercial line customer service representatives handle an average of $228,894 commission, up from $195,066 in the 1999 study.
The study, the association said, provides averages but also offers critical performance indicators of the best performing agencies. Agency owners can use the results of the study to compare their performance to their peers.
Information on ordering the study can be found by e-mailing [email protected]. The association's Web site is www.scic.com.
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