This brief captures the 2025 GPS profile for the regional-market segment — the balanced middle of the geographic spectrum, and the most profitable of the three metro segments at 13.95% pre-tax. Each figure is a segment benchmark; the companion GPS segment reference compares the geographic and specialization cuts.
§ 01 · ProfitabilityProfitability & cost structure.
The highest margin of the geographic segments at 13.95% pre-tax, on a moderate cost base — a regional market without metro occupancy and talent inflation.
| Metric | Benchmark |
|---|---|
| Pre-tax profit margin | 13.95% |
| Total expense ratio | 86.05% |
| Total compensation (% of revenue) | 65.79% |
| Executive / owner compensation | 18.21% |
| Sales (producer) compensation | 15.02% |
| Office (service) compensation | 23.03% |
| Total administrative expenses | 20.26% |
§ 02 · Revenue mixRevenue mix.
A genuinely balanced book — 51.27% commercial, 30.21% personal — that limits cyclicality and reads as diversified in diligence.
| Line | % of revenue |
|---|---|
| Commercial lines | 51.27% |
| Personal lines | 30.21% |
| Life | 1.73% |
| Health | 6.42% |
| Contingent / bonus | 8.53% |
| Fees | 1.04% |
| Other | 0.77% |
Revenue mix, at a glance.
The balanced regional book. Bar widths are exact percentages of revenue.
§ 03 · Growth & retentionGrowth & retention.
Solid 8% growth with strong, even retention across all three lines (89–92%) — a stable book without a soft spot.
| Metric | Benchmark |
|---|---|
| Annual revenue growth | 8% |
| Commercial-lines retention | 89% |
| Personal-lines retention | 90% |
| Life & health retention | 92% |
§ 04 · ProductivityProductivity per person.
$137,876 revenue per person across a 15.1-person team with 3.2 producers — efficient mid-market staffing without metro overhead.
| Metric | Benchmark |
|---|---|
| Revenue per employee | $137,876 |
| Commission per employee | $123,606 |
| Compensation per owner | $205,518 |
| CL commission per account | $1,202 |
| Total staff (average) | 15.1 |
| Producers (average) | 3.2 |
§ 05 · Balance sheetBalance-sheet & book quality.
Mid-range, healthy ratios; the one watch-item is a longer 29.9-day receivable cycle.
| Metric | Benchmark |
|---|---|
| Trust position ratio | 3.60 |
| Collection ratio | 1.21 |
| Current ratio | 2.36 |
| Days working capital | 74.8 |
| Average age of receivables | 29.9 days |
- Highest geographic-segment margin. 13.95% pre-tax — efficiency without metro cost inflation.
- Genuinely balanced book. 51.27% CL / 30.21% PL limits cyclicality.
- Even retention. 89–92% across all lines, no soft spot.
- Efficient staffing. 15.1 staff, 3.2 producers, $137,876 revenue per person.
- Emerging cross-sell. 17% CISR and a 3% CRM rate point to developing capability.
- Longer receivables. 29.9 days — the one diligence watch-item.
The book with no glaring weakness.
GPS benchmarks don't value an agency — they're the operating baseline a valuation is built on. The regional segment is the one buyers describe as having no glaring weakness: balanced book, strong margin, even retention, efficient staffing. That diversification is itself the value — there's no single-line or single-account concentration to discount. The metrics that move the multiple are the durable margin and the cross-line retention; the receivable cycle is worth a diligence question.
The companion financial & transactional mechanics reference covers how operating benchmarks translate into a normalized earnings bridge.
What GPS measures. The Growth & Performance Standards study tracks growth, profitability, and stability across reporting independent agencies, segmented here by metro size.
Percentages of revenue. Expense, compensation, and revenue-mix lines are percentages of total agency revenue unless a dollar figure is shown.
Benchmarks, not averages-of-extremes. Each figure is the segment's reported standard — the typical agency, not a blend of outliers.
Frequency. The GPS study publishes annually. Milly Books refreshes this brief with each edition.