2010 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Revenue by Aquisition

Mgmt. Perspectives

Profile

Acquired Revenues

Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Expenses

Profitability

Acquisitions Made in Last 12 Months

26.3%

$2,202,771

2.8%

Employee Overview

Producer Info

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Staff Service Info

Average

$576,852 $3,200,000

Average

1.04x 2.50x 0.50x

Technology

High Low

High Low

Insurance Carriers

$16,362

Appendix

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.2%

6.2%

2.6%

High Low

20.6%

1.1% 9.5%

10 Largest Accounts

9.5%

10.6%

High Low

18.7%

5.2%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life

16.1% 12.9% 18.2% 14.3%

28.5% 22.4% 15.3%

14.8% 11.3% 15.2% 34.4%

Disability

Dental & Vision

Retirement/Pension

0.1% 2.0% 0.2% 0.0%

Worksite/Voluntary/Supplement

2.2% 1.4%

0.0% 0.8% 5.1%

Long-Term Care

2010 Best Practices Study

Employee Benefits TPA

14.8% 20.1%

All Other

31.5%

18.5%

*Excludes Group Medical

Agencies with Revenues Over $25,000,000

157