2015 Best Practices Study

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

Key Benchmarks Profile

Revenue from Top Insurance Carriers

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

Average

Top 25% Profit Top 25% Growth

P&C Commission Income from Top Carriers Top P&C Carrier

$4,373,571

$5,936,255

$5,638,090

as % of Agency Net Revenue

8.0%

9.2%

8.9%

Top P&C Carrier —Breakdown By Line of Business

Average

Top 25% Profit

Top 25% Growth

Personal 13.4%

Personal 0.0%

Personal 7.4%

Mid/Large Commercial 76.5%

Mid/Large Commercial 92.3%

Mid/Large Commercial 71.2%

Small Commercial 16.0%

Small Commercial 15.4%

Small Commercial 7.8%

Top 3 P&C Carriers

$9,391,544

$11,873,552

$11,069,005

as % of Agency Net Revenue

16.9%

18.6%

16.7%

Top 3 P&C Carriers —Breakdown By Line of Business

Average

Top 25% Profit

Top 25% Growth

Personal 13.0%

Personal 10.1%

Mid/Large Commercial 80.1%

Mid/Large Commercial 84.9%

Mid/Large Commercial 71.0%

Personal 1.3%

Small Commercial 9.9%

Small Commercial 13.9%

Small Commercial 15.9%

2015 Best Practices Study

Average

Top 25% Profit Top 25% Growth

L&H/F Commission Income from Top Carriers as % of Net Rev from Top L&H/F Carrier as % of Net Rev from Top 3 L&H/F Carriers

6.6%

6.7%

4.8%

Agencies with Revenues Over $25,000,000

11.4%

10.4%

10.7%

156

Note: See page 163 for an explanation of column headings