2015 Best Practices Study

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

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

25.1%

20.1%

33.2%

# of Accounts Total Revenue

12.3

9.3

16.5

$635,885 $51,688

$463,112 $49,797

$873,191 $52,921

Revenue per Account

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

15.3%

11.6%

14.2%

# of Accounts Total Revenue

23.6

16.9

20.1

$368,896 $15,646

$266,910 $15,794

$373,943 $18,604

Revenue per Account

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

13.1%

8.7% 30.6

11.7%

# of Accounts Total Revenue

46.4

43.6

$316,352

$200,040

$306,401

Revenue per Account

$6,818

$6,537

$7,028

Less than $5,000 % of Book

46.5% 2,064.2

59.7% 3,141.7

40.9% 2,021.2

# of Accounts Total Revenue

$1,124,028

$1,377,909

$1,076,187

Revenue per Account

$545

$439

$532

(as measured by number of lives)

Average

Top 25% Profit

Top 25% Growth

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

33.4%

44.6%

31.1%

# of Accounts Total Revenue

4.9

3.3

4.6

$209,323 $43,159

$105,556 $32,479

$330,905 $71,936

Revenue per Account

50 - 100 Lives

% of Book

18.0%

14.7%

18.0%

# of Accounts Total Revenue

8.1

11.0

9.8

$98,081 $12,063

$27,853 $2,532

$159,387 $16,209

2015 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

16.4%

8.2%

21.1%

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

# of Accounts Total Revenue

16.1

5.0

44.5

$82,200 $4,964

$15,464 $3,093

$186,934

Revenue per Account

$4,201

Under 25 Lives

% of Book

32.3% 175.6

32.5% 215.4

29.7% 309.4

# of Accounts Total Revenue

60

$126,584

$38,469

$197,484

Revenue per Account

$741

$191

$638

Note: See page 163 for an explanation of column headings