Here are some of the main findings from the study:

Organic growth is slowing for most agency categories.

Last year’s study revealed the highest organic growth rates since 2008. This year’s study shows a different picture, with only one group ($1.25 million to $5 million) achieving an increased growth rate of at least one percentage point.

Growth rates are still high.

In conjunction with the organic growth numbers, growth rates remained in the high single digits, with two study groups ($1.25 million to $5 million, and $10 million to $25 million) achieving double-digit growth rates.

Profitability is strong -- but stagnant.

Pro-forma profit margins--the actual profitability of an agency if non-reoccurring/extraordinary expenses and revenue, and excessive owner compensation and perks are normalized--were strong but again stagnant. As revenue growth rates slowed, profit margins were and will be under increased pressure, and may result in either no growth or negative growth in the coming year.

Operating profit margins grew slightly. The operating profit is the pre-tax profit of an agency excluding supplemental income (contingent, bonus, and investment income). P-c contingent and life-health bonus income has historically contributed significantly to an agency’s profit margin. Over the last decade, however, that source of revenue has shrunk. Best Practices Agencies focused on becoming less dependent on it by reducing expenses, becoming more efficient and finding other sources of revenue. As a result, the operating profits continued to improve.

Rule of 20 scores, which reflect value creation, declined.

The Rule of 20 scores, a formula that provides a quick way to determine if an agency is creating value for shareholders, were down this year, reflecting the flat growth and profitability results. A score of 20 or more indicates an agency is maintaining a healthy balance between growing revenues and sustaining or enhancing profitability. A score of 20 or more typically indicates that an agency will achieve, through profit distributions and/or stock appreciation, an industry standard rate of return on its investments in people, systems and activities needed to grow and operate the agency.

Agency staffing strategies are adapting to changes in the workforce.

The study includes the number of workers, total payroll, and payroll as a percentage of net revenues. This year’s study included several new staffing statistics, including the number of remote workers and administrative staff (accounting and HR).

Last year the service staff data was changed to offer salary ranges for the key service and sales support positions and to provide the total number of staffing needed to support each line of business. These updates reflect the changing workplace and should provide interesting data in the future.

For more information on Best Practices products and resources, go to the Best Practices Gateway (http://bp.reaganconsulting.com) or www.independentagent.com/bestpractices.