2010 Best Practices Study

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

Revenue by Account Size (as measured by Comm. & Fees – not premium)

Mgmt. Perspectives

Profile

Average

+25% Profit

+25% Growth

Commercial P&C Total Commissions & Fees in Book

Revenues

$1,177,220

$1,070,654

$1,002,036

Greater than $25,000 % of Book

Expenses

24.1%

22.8%

23.2%

Profitability

# of Accounts Total Revenue

8.9

11.1

17.6

$339,769 $38,320

$271,398 $24,426

$324,854 $18,458

Employee Overview

Revenue per Account

Producer Info

Between $10,000 and $25,000 % of Book

16.9%

16.8%

16.2%

Staff Service Info

# of Accounts Total Revenue

20.4

18.5

46.9

$199,324

$179,521

$162,499

Technology

Revenue per Account

$9,763

$9,704

$3,468

Insurance Carriers

Between $5,000 and $10,000 % of Book

16.3%

13.4%

21.3%

Appendix

# of Accounts Total Revenue

38.8

27.4

87.9

$191,846

$143,437

$213,616

Revenue per Account

$4,947

$5,235

$2,431

Less than $5,000

% of Book

42.7% 1,195.5

47.0% 1,111.1

39.3% 649.4

# of Accounts Total Revenue

$502,909

$503,437

$393,883

Revenue per Account

$421

$453

$607

(as measured by Comm. & Fees – not premium)

Average

+25% Profit

+25% Growth

Group L&H/Financial Total Commissions & Fees in Book

$214,568

$167,116

$147,337

Greater than $25,000 % of Book

28.9%

31.3%

43.1%

# of Accounts Total Revenue

2.5

2.0

1.0

$109,806 $43,257

$87,264 $43,632

$127,135 $127,135

Revenue per Account

Between $10,000 and $25,000 % of Book

17.3%

10.7%

15.9%

# of Accounts Total Revenue

4.7

3.7

3.0

$56,865 $12,185

$29,933 $8,164

$46,940 $15,647

Revenue per Account

2010 Best Practices Study

Between $5,000 and $10,000 % of Book

17.0%

13.9%

5.8%

# of Accounts Total Revenue

7.7

4.5

2.5

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

$49,401 $6,411

$29,088 $6,464

$17,136 $6,854

Revenue per Account

Less than $5,000

% of Book

36.8% 210.0

44.0%

35.1% 116.3

# of Accounts Total Revenue

35.5

$86,418

$91,909 $2,589

$68,976

38

Revenue per Account

$412

$593