2015 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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 8.9% 7.4%

8.8%

Personal P&C Group Medical All Other Group

3.0% 1.4%

1.4%

17.4%

-9.8%

* *

-12.6%

-17.2%

Total Organic Growth

9.7%

4.2%

24.1%

PROFIT Pro Forma Pretax Profit

23.4% 26.9%

37.9% 38.7%

17.3% 19.8%

Pro Forma EBITDA Rule of 20 Score

22.1

23.5

30.5

FINANCIAL

Average

Top 25%

Current Ratio

1.68:1 21.8% 12.7%

3.18:1

Receivable/Payable Ratio

-25.8%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

1.6% 0.0%

5.4%

PRODUCTIVITY Total Agency

Average $142,005 $79,898 $62,107

Top 25% Profit Top 25% Growth

Revenue per Employee

$182,670 $92,350 $90,320 Top 25% $87,724 $54,934 $95,335

$119,025 $69,240 $49,785

Compensation per Employee

Spread per Employee

Annual New Commissions Generated per Validated Producer Average

Commercial P&C

$51,783 $28,939 $47,590

Personal P&C

Life & Health/Financial

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

2015 Best Practices Study

# of Service Staff

Commercial P&C

18.2% 21.5% 15.9%

3.4 2.8 0.7

Personal P&C

Agencies with Revenues Between $1,250,000 and $2,500,000

Group Life & Health/Financial

*Insufficient Data

29

Note: See page 163 for an explanation of column headings