2010 Best Practices Study

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

Profile (of Agencies in this Study Group) A. Average Total Revenues: $15,871,895 B. Population Density of Metropolitan Areas Where Home Office is Located Average

Mgmt. Perspectives

Profile

Revenues

+25% Profit

+25% Growth

Expenses

Less than 50,000 50,000 – 250,000 250,000 – 1,000,000 More than 1,000,000 C. Corporate Structure C

5.1%

6.1%

8.5%

Profitability

20.5% 38.5% 35.9%

20.4% 36.7% 36.7%

22.0% 30.5% 39.0%

Employee Overview

Producer Info

Staff Service Info

20.5% 56.4%

20.4% 59.2%

22.0% 54.2%

S

Technology

Partnership

0.0%

0.0%

0.0%

Insurance Carriers

LLC

23.1%

20.4%

23.7%

Appendix

Sole Proprietorship

0.0%

0.0%

0.0%

Average Number of Agency Locations (Main Offices and Branch Offices)

4.4

5.0

5.5

# of States Offices are Located in

1.4

1.3

1.6

Agency has an ESOP

15.4% 63.1%

20.0% 56.8%

10.0% 84.0%

% of Stock Owned by ESOP

D. Shareholders Number of Shareholders (excluding ESOP)

8.3

7.3

5.5

High

32.0

Low

1.0

E. Ownership Percentage % Owned by Largest Shareholder

46.5%

52.8%

46.9%

High

100.0%

Low

11.0%

F. Shareholder Age Current Age of Largest Shareholder

55.5

54.6

52.8

G. Parent Corporation

Average

% of Agencies Owned by Another Corporation

10.5%

2010 Best Practices Study

“Other” included AAA, joint venture, another insurance agency, holding company or large ESOP with number of diversified industries.

Description of Parent Corporation Financial Institution

75.0%

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

0.0%

National Broker

Other

25.0%

H. Member of Group

% of Agencies Belonging to a Franchise, Cluster, Alliance/Network or Aggregator Group

“Groups” included Assurex, Intersure, and AAA National.

33.3%

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