In spite of continuing soft-market conditions, both median organic growth and earnings before interest, taxes, depreciation and amortization (EBITDA) for privately held insurance agents and brokers were up slightly from 2010. Median organic growth totaled 3.7 percent, and median EBITDA profitability was up slightly at 18.2 percent, according to Reagan Consulting's 2011 year-end Organic Growth and Profitability (OGP) Survey, released Feb. 13.
The OGP Survey is a real-time indicator of quarterly growth and profitability results for privately held insurance agents and brokers. With both organic growth and profitability showing improvement over 2010 results, 2011 was a significantly better year for the industry.
Reagan's “Rule of 20,” calculated by adding an agency's organic-growth rate to one-half of its EBITDA profit margin, totaled 12.9 for the median OGP participant, an improvement of almost 22 percent vs. 2010.
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