2010 Best Practices Study

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

Profile (of Agencies in this Study Group) A. Average Total Revenues: $791,342 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

52.5% 22.5% 15.0% 10.0%

48.0% 22.0% 18.0% 12.0%

48.3% 20.0% 20.0% 11.7%

Profitability

Employee Overview

Producer Info

Staff Service Info

32.5% 45.0%

30.0% 46.0%

31.7% 43.3%

S

Technology

Partnership

5.0%

4.0%

6.7%

Insurance Carriers

LLC

15.0%

18.0%

16.7%

Appendix

Sole Proprietorship

2.5%

2.0%

1.7%

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

1.3

1.2

1.5

# of States Offices are Located in

1.0

1.1

1.0

Agency has an ESOP

0.0% 0.0%

0.0% 0.0%

20.0% 82.5%

% of Stock Owned by ESOP

D. Shareholders Number of Shareholders (excluding ESOP)

1.9 5.0 1.0

3.0

2.0

High

Low

E. Ownership Percentage % Owned by Largest Shareholder

77.4%

66.7%

66.7%

High

100.0%

Low

46.0%

F. Shareholder Age Current Age of Largest Shareholder

53.6

57.5

52.1

G. Parent Corporation

Average

% of Agencies Owned by Another Corporation

2.7%

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

100.0%

Agencies with Revenues Under $1,250,000

0.0% 0.0%

National Broker

Other

H. Member of Group

“Groups” included DCS, Shared Agency Services, 3-S Agencies, SMART Group, Iroquois, Pacific Interstate Insurance Brokers, and Consolidated Agencies.

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

17.5%

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