Perspectives for High Performance
Transforming an Agency Through Data
Perspectives for High Performance (PHP) is MarshBerry’s proprietary financial and productivity benchmarking system utilizing more than 4201 key ratios that are designed to analyze insurance agency performance.
Our PHP database represents more than $5 billion in aggregate agency revenue and we have more than 1,200 independent insurance agencies and brokers across the United States and Canada providing data for benchmarking services.2
MarshBerry transforms an agency’s balance sheet and income statement into a standard format which allows for meaningful comparisons. We then benchmark performance standards, either annually or quarterly, against similarly sized firms using data from the PHP database. Data from each subscriber is updated every quarter, but in total the database changes almost daily.
The system calculates critical financial and productivity ratios and compares these ratios to the Average Performance and Best 25% of the group. Performance is ranked and weighted to determine a Performance Indicator Number, or PIN, which ranges from 0 to 10.
According to our historical data, agencies who perform well (e.g. have a high PIN) tend to have a higher agency value.3
1According to 2017 MarshBerry data.
2There may be some duplication in the number of firms counted as certain firms subscribe to and/or provide data for multiple benchmarking services.
3MarshBerry proprietary financial management system Perspectives for High Performance (“PHP”), and MarshBerry valuation database. Past performance is not necessarily indicative of future results. Individual results may vary.
4Compound annual growth rate calculated from the beginning of each agency subscription through 12/31/13. Subscriptions range from 1 to 17 years, with an average tenure of 7.5 years.
SOURCE: MarshBerry proprietary financial management system Perspectives for High Performance (“PHP”). Past performance is not necessarily indicative of future results. “Average” is the average of the agencies in the group for means of contrasting, while “Best 25%” is the best 25% of the average. Individual results may vary. EBITDA: Earnings Before Interest, Taxes, Depreciation & Amortization
How PHP Clients Benefit
Data is verified and validated by analysts to ensure an apples-to-apples comparison. The PHP report is most effective when used on a regular basis and is ideal to:
- Discover weaknesses, opportunities and areas in need of improvement
- Identify trends that require immediate attention
- Define actionable strategies that can integrate into the annual strategic planning process
- Set agency, management and departmental performance goals
- Monitor performance relative to peers
- Keep informed of industry trends and performance
SOURCES: MarshBerry proprietary financial management system Perspectives for High Performance (“PHP”), and MarshBerry valuation database. Past performance is not necessarily indicative of future results. Individual results may vary. Multiples do not imply that all valuations fall within these parameters.