2010 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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%

0.9%

9.6%

Staff Service Info

Personal P&C

4.5%

7.1%

8.5%

Group Medical

-4.9%

-14.1%

-11.2%

Technology

All Other Group

*

*

*

Insurance Carriers

Total Organic Growth

2.0%

0.7%

13.0%

Appendix

Profit Pro Forma Pretax Profit

25.1%

43.2%

25.8%

Pro Forma EBITDA

27.5%

43.8%

27.6%

Rule of 20 Score

16.3

21.7

30.6

Financial

Average

Top 25%

Current Ratio

1.03:1

1.84:1

Receivable/Payable Ratio

88.7%

10.1%

Accounts Receivables > 60 Days

36.1%

6.2%

Accounts Receivables > 90 Days

20.7%

2.7%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$124,669

$158,089

$114,805

Compensation per Employee

$68,403

$71,402

$59,413

Spread per Employee

$56,267

$86,687

$55,392

Annual New Commission Generated per Validated Producer

Average

Top 25%

Commercial P&C

$37,590

$73,761

Personal P&C

$20,175

$34,892

2010 Best Practices Study

Life & Health/Financial

$21,974

$41,875

Commissions Serviced per Service & Sales Support Staff

Agencies with Revenues Under $1,250,000

Average

Top 25%

Commercial P&C

$197,492

$401,168

Personal P&C

$150,150

$330,738

Life & Health/Financial

$116,003

$166,297

*Insufficient Data **Excludes any acquired revenue

2