Reagan Consulting is launching its second quarterly Organic Growth & Profitability (OGP) Survey–providing a new national standard for these two key value drivers among large agencies and brokerages across the U.S. The first study was conducted in late 2008 to reflect the first nine months of last year; this survey will reflect full-year 2008 results.

Findings from the third-quarter 2008 study offers include:

o Industry data indicates that large private brokerage organic growth rates exceeded public brokerage growth rates.
o About 42 percent of surveyed firms indicated that organic growth was negative during the first nine months of 2008.
o Only 8.3 percent of firms surveyed reported double-digit organic growth (e.g., more than 10%).
o To be a top-25 percent performer nationwide required organic growth of 5.9 percent or more.
o Employee benefits were the fastest growing line of business (9.5 percent) for study participants.
o On average, the public brokerages reported a higher EBITDA margin (Earnings Before Interest Taxes Depreciation and Amortization divided by revenues) than study participants (22.6 percent vs. 20.3 percent).
o To be a top-25% performer nationwide required an EBITDA margin of 25.5% or higher.