2015 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

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

Average

Top 25% Profit

Top 25% Growth

ORGANIC GROWTH BY LINE OF BUSINESS (excludes any acquired revenue) Commercial P&C 8.2% 4.2%

16.8% 3.2% 5.2% -8.0% 14.7%

Personal P&C Group Medical All Other Group

2.4% 5.6% 3.8% 7.6%

5.9% 4.4%

16.3%

Total Organic Growth

6.1%

PROFIT Pro Forma Pretax Profit

14.3% 17.6%

23.9% 25.9%

15.8% 18.5%

Pro Forma EBITDA Rule of 20 Score

15.9

18.2

23.5

FINANCIAL

Average

Top 25%

Current Ratio

1.31:1 48.6%

1.75:1 15.9%

Receivable/Payable Ratio

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

6.5% 7.4%

1.0%

-3.5%

PRODUCTIVITY Total Agency

Average $207,660 $136,627

Top 25% Profit Top 25% Growth

Revenue per Employee

$206,793 $122,262

$223,743 $157,721

Compensation per Employee

Spread per Employee

$68,764

$74,974

$66,023

Annual New Commissions Generated per Validated Producer Average

Top 25% $215,771

Commercial P&C

$120,434

Personal P&C

$50,165

$86,923

Life & Health/Financial

$153,924

$266,743

Service Staff Total Payroll as % of Line of Business Revenue Average

2015 Best Practices Study

# of Service Staff

Commercial P&C

19.7% 26.6% 16.4%

87.8 12.3 33.2

Personal P&C

Agencies with Revenues Over $25,000,000

Group Life & Health/Financial

133

Note: See page 163 for an explanation of column headings