2010 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Mgmt. Perspectives

Profile

Revenues

Key Benchmarks at a Glance

Expenses

Profitability

Average

+25% Profit

+25% Growth

Growth Organic Growth By Line of Business* Commercial P&C

Employee Overview

Producer Info

0.7%

5.3%

9.7%

Staff Service Info

Personal P&C

4.4%

1.4%

7.9%

Group Medical

-3.7%

-4.1%

1.5%

Technology

All Other Group

-4.6%

-15.4%

11.2%

Insurance Carriers

Total Organic Growth

1.8%

3.4%

8.3%

Appendix

Profit Pro Forma Pretax Profit

15.6%

27.7%

17.6%

Pro Forma EBITDA

19.6%

30.4%

22.9%

Rule of 20 Score

10.5

16.3

20.1

Financial

Average

Top 25%

Current Ratio

1.30:1

1.95:1

Receivable/Payable Ratio

41.3%

-2.2%

Accounts Receivables > 60 Days

15.6%

3.8%

Accounts Receivables > 90 Days

5.7%

1.3%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$171,761

$202,370

$192,834

Compensation per Employee

$114,034

$118,846

$121,914

Spread per Employee

$57,727

$83,524

$70,920

Annual New Commission Generated per Validated Producer

Average

Top 25%

Commercial P&C

$89,256

$147,183

Personal P&C

$53,794

$79,956

2010 Best Practices Study

Life & Health/Financial

$136,243

$257,513

Commissions Serviced per Service & Sales Support Staff

Agencies with Revenues Between $10,000,000 and $25,000,000

Average

Top 25%

Commercial P&C

$338,968

$558,100

Personal P&C

$206,185

$481,197

Life & Health/Financial

$362,060

$371,004

*Excludes any acquired revenue

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