2010 Best Practices Study

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

Profile (of Agencies in this Study Group) A. Average Total Revenues: $1,926,340 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

48.8% 25.6%

53.7% 25.9%

55.4% 24.6%

Profitability

7.0%

5.6%

4.6%

Employee Overview

18.6%

14.8%

15.4%

Producer Info

Staff Service Info

42.9% 42.9%

46.2% 38.5%

42.9% 42.9%

S

Technology

Partnership

2.4%

1.9%

1.6%

Insurance Carriers

LLC

11.9%

13.5%

12.7%

Appendix

Sole Proprietorship

0.0%

0.0%

0.0%

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

1.9

1.8

2.0

# of States Offices are Located in

1.0

1.0

1.1

Agency has an ESOP

2.3%

9.1%

0.0% 0.0%

% of Stock Owned by ESOP

50.0%

50.0%

D. Shareholders Number of Shareholders (excluding ESOP)

2.7 6.0 1.0

3.1

2.7

High

Low

E. Ownership Percentage % Owned by Largest Shareholder

69.5%

69.6%

63.8%

High

100.0%

Low

27.3%

F. Shareholder Age Current Age of Largest Shareholder

53.6

53.0

52.9

G. Parent Corporation

Average

% of Agencies Owned by Another Corporation

9.3%

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% 25.0%

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

National Broker

Other

0.0%

H. Member of Group

“Groups” included Combined Agents of America, Iroquois Group, Market Source, Shared Agency Services, Select Prism Group, GA Agency Partners, SIANNY, and OK Agents Alliance - SIIA.

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

32.6%

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