2015 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

51.9%

45.9%

54.4%

Bonds

1.4%

1.1%

0.9%

Personal Commissions Value Added Services

28.7%

34.3%

24.0%

0.1% 8.8%

0.1%

0.1% 9.5%

Contingent/Bonus

11.9% 93.4%

Total P&C

90.9%

89.1%

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

5.6% 1.2% 1.1% 0.2% 8.1% 0.5% 0.4%

3.5% 0.7% 0.9% 0.5% 5.5% 0.6% 0.5%

6.7% 2.2% 0.8% 0.1% 9.7% 0.6% 0.6%

Bonus/Overrides

Total L&H/Financial

Investments Miscellaneous

GROSS REVENUES

100.0%

100.0%

100.0%

Brokerage Commission Expense

2.1%

0.0%

1.6%

NET REVENUES

97.9%

100.0%

98.4%

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 $2,500,000 and $5,000,000

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

57

Note: See page 163 for an explanation of column headings