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

Revenues

(% by Source)

Average

Top 25% Profit Top 25% Growth

Property & Casualty Commercial Commissions & Fees

49.2%

41.9%

57.5%

Bonds

1.5%

0.7%

1.2%

Personal Commissions Value Added Services

23.9%

28.4%

14.1%

1.8% 9.1%

6.5% 7.0%

0.7%

Contingent/Bonus

10.7% 84.2%

Total P&C

85.4%

84.4%

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

9.0% 2.7% 1.2% 0.6%

8.8% 3.8% 1.4% 1.0%

9.6% 4.0% 1.4% 0.6%

Bonus/Overrides

Total L&H/Financial

13.5%

14.9%

15.5%

Investments Miscellaneous

0.3% 0.8%

0.2% 0.4%

0.2% 0.0%

GROSS REVENUES

100.0%

100.0%

100.0%

Brokerage Commission Expense

0.8%

0.0%

0.3%

NET REVENUES

99.2%

100.0%

99.7%

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 $5,000,000 and $10,000,000

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

83

Note: See page 163 for an explanation of column headings