2015 Best Practices Study

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

Revenue by Account Size (as measured by comm. & fees – not premium)

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

Average

Top 25% Profit

Top 25% Growth

COMMERCIAL P&C Greater than $25,000 % of Book

16.8%

21.2%

20.9%

# of Accounts Total Revenue

5.1

5.2

3.5

$250,325 $49,033

$188,420 $36,468

$246,955 $70,559

Revenue per Account

Between $10,000 and $25,000 % of Book

16.4%

28.6%

14.4%

# of Accounts Total Revenue

14.7

20.7

9.6

$201,442 $13,748

$254,065 $12,293

$136,529 $14,222

Revenue per Account

Between $5,000 and $10,000 % of Book

13.3%

24.6%

13.4%

# of Accounts Total Revenue

24.8

36.0

18.0

$163,171

$218,095

$126,846

Revenue per Account

$6,573

$6,058

$7,047

Less than $5,000 % of Book

53.5% 1,550.6

25.6% 245.7

51.2% 1,043.8

# of Accounts Total Revenue

$657,470

$226,999

$484,470

Revenue per Account

$424

$924

$464

(as measured by number of lives)

Average

Top 25% Profit

Top 25% Growth

GROUP L&H/FINANCIAL Over 100 Lives % of Book

12.8%

20.0%

* * * *

# of Accounts Total Revenue

2.5

3.0

$78,614 $31,446

$103,158 $34,386

Revenue per Account

50 - 100 Lives

% of Book

12.0%

15.9%

3.4%

# of Accounts Total Revenue

4.6

9.5

* * *

$19,083 $12,866

*

2015 Best Practices Study

Revenue per Account

$12,952

25 - 50 Lives

% of Book

20.2%

22.8%

12.7%

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

# of Accounts Total Revenue

6.9

19.0

5.0

$62,194 $9,046

$176,190

$34,684 $6,937

Revenue per Account

$9,273

Under 25 Lives

% of Book

55.0%

41.2%

83.9%

# of Accounts Total Revenue

46.5

18.5

13.0

34

$40,786

$60,050

$36,376

Revenue per Account

$442

$377

$510

Note: See page 163 for an explanation of column headings

*Insufficient Data