2010 Best Practices Study

Analysis of Agencies with Revenues Over $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

-2.1%

1.6%

6.4%

Staff Service Info

Personal P&C

2.6%

-1.3%

1.1%

Group Medical

1.9%

6.8%

-1.3%

Technology

All Other Group

1.7%

10.9%

*

Insurance Carriers

Total Organic Growth

1.5%

2.1%

8.5%

Appendix

Profit Pro Forma Pretax Profit

15.5%

24.9%

15.4%

Pro Forma EBITDA

19.8%

27.3%

18.4%

Rule of 20 Score

11.1

16.6

17.3

Financial

Average

Top 25%

Current Ratio

1.37:1

1.96:1

Receivable/Payable Ratio

52.9%

29.9%

Accounts Receivables > 60 Days

11.7%

2.4%

Accounts Receivables > 90 Days

3.5%

0.7%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$183,340

$188,867

$182,913

Compensation per Employee

$119,941

$114,128

$125,168

Spread per Employee

$63,400

$74,739

$57,744

Annual New Commission Generated per Validated Producer

Average

Top 25%

Commercial P&C

$116,609

$198,434

Personal P&C

$46,730

$87,262

2010 Best Practices Study

Life & Health/Financial

$143,662

$248,622

Commissions Serviced per Service & Sales Support Staff

Agencies with Revenues Over $25,000,000

Average

Top 25%

Commercial P&C

$357,734

$625,878

Personal P&C

$176,481

$601,183

Life & Health/Financial

$455,516

$677,108

*Insufficient Data **Excludes any acquired revenue

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