2015 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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 5.7% 6.6%

11.2%

Personal P&C Group Medical All Other Group

4.4%

2.2%

6.4%

-1.6% 14.2%

-1.5% 6.1% 5.7%

-0.5% 18.9% 14.8%

Total Organic Growth

7.1%

PROFIT Pro Forma Pretax Profit

22.7% 25.2%

35.6% 37.9%

25.3% 26.5%

Pro Forma EBITDA Rule of 20 Score

18.0

25.4

22.7

FINANCIAL

Average

Top 25%

Current Ratio

1.37:1 42.4% 12.7%

2.06:1

Receivable/Payable Ratio

8.3% 0.6%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

1.9%

-14.8%

PRODUCTIVITY Total Agency

Average $170,743 $105,991

Top 25% Profit Top 25% Growth

Revenue per Employee

$209,600 $123,659

$174,715 $103,572

Compensation per Employee

Spread per Employee

$64,752

$85,940

$71,143

Annual New Commissions Generated per Validated Producer Average

Top 25% $163,040

Commercial P&C

$80,181 $41,189 $70,205

Personal P&C

$73,213

Life & Health/Financial

$126,622

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

2015 Best Practices Study

# of Service Staff

Commercial P&C

22.5% 24.1% 17.9%

13.6

Personal P&C

9.1 3.1

Agencies with Revenues Between $5,000,000 and $10,000,000

Group Life & Health/Financial

81

Note: See page 163 for an explanation of column headings