2015 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Revenues

(% by Source)

Average

Top 25% Profit Top 25% Growth

Property & Casualty Commercial Commissions & Fees

50.8%

50.3%

44.6%

Bonds

1.0%

0.6%

0.8%

Personal Commissions Value Added Services

15.2%

13.9%

23.4%

0.6% 6.6%

0.6% 5.8%

0.7% 5.2%

Contingent/Bonus

Total P&C

74.3%

71.2%

74.8%

Life & Health/Financial Group Medical Commissions & Fees All Other Group Commissions & Fees Individual L&H Commissions & Fees

14.5%

16.9%

11.6%

5.1% 2.9% 1.5%

3.7% 5.1% 2.7%

3.5% 4.9% 1.8%

Bonus/Overrides

Total L&H/Financial

24.1%

28.4%

21.8%

Investments Miscellaneous

0.8% 0.9%

0.3% 0.1%

1.4% 2.0%

GROSS REVENUES

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.7%

0.6%

1.2%

NET REVENUES

98.3%

99.4%

98.8%

Revenue by Source (% of Gross Revenues)

Average

Top 25% Profit

Top 25% Growth

60.0%

50.0%

40.0%

2015 Best Practices Study

30.0%

20.0%

% Total Revenue

Agencies with Revenues Between $10,000,000 and $25,000,000

10.0%

0.0%

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal Comm & Fees

P&C VAS Fees

P&C Contingent/ Bonus

L&H Group Medical Comm & Fees

L&H All Other Group Comm & Fees

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

Comm & Fees

Comm & Fees

109

Note: See page 163 for an explanation of column headings