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.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.