2010 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

-0.4%

0.4%

9.4%

Staff Service Info

Personal P&C

2.1%

1.7%

9.9%

Group Medical

6.8%

-1.5%

27.6%

Technology

All Other Group

-3.5%

*

38.8%

Insurance Carriers

Total Organic Growth

1.0%

1.6%

10.5%

Appendix

Profit Pro Forma Pretax Profit

26.1%

44.0%

24.9%

Pro Forma EBITDA

29.3%

45.3%

29.0%

Rule of 20 Score

14.4

21.7

22.9

Financial

Average

Top 25%

Current Ratio

1.31:1

2.06:1

Receivable/Payable Ratio

40.3%

-10.9%

Accounts Receivables > 60 Days

36.6%

2.1%

Accounts Receivables > 90 Days

25.7%

1.9%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$147,188

$180,641

$135,750

Compensation per Employee

$83,724

$77,840

$76,304

Spread per Employee

$63,464

$102,801

$59,446

Annual New Commission Generated per Validated Producer

Average

Top 25%

Commercial P&C

$78,419

$163,002

Personal P&C

$28,811

$51,604

2010 Best Practices Study

Life & Health/Financial

$33,321

$68,886

Commissions Serviced per Service & Sales Support Staff

Agencies with Revenues Between $1,250,000 and $2,500,000

Average

Top 25%

Commercial P&C

$256,826

$405,483

Personal P&C

$177,147

$283,943

Life & Health/Financial

$241,979

$415,024

*Insufficient Data **Excludes any acquired revenue

32