2010 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

-1.5%

-3.3%

2.3%

Staff Service Info

Personal P&C

-0.1%

-4.6%

3.4%

Group Medical

4.3%

16.4%

9.8%

Technology

All Other Group

-2.3%

*

8.2%

Insurance Carriers

Total Organic Growth

0.1%

-1.4%

3.7%

Appendix

Profit Pro Forma Pretax Profit

19.9%

32.7%

26.6%

Pro Forma EBITDA

23.2%

33.7%

27.8%

Rule of 20 Score

11.8

15.6

20.6

Financial

Average

Top 25%

Current Ratio

1.33:1

2.02:1

Receivable/Payable Ratio

42.7%

1.3%

Accounts Receivables > 60 Days

20.9%

6.6%

Accounts Receivables > 90 Days

11.9%

2.2%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$145,400

$155,769

$155,484

Compensation per Employee

$91,736

$90,567

$96,528

Spread per Employee

$53,664

$65,202

$58,956

Annual New Commission Generated per Validated Producer

Average

Top 25%

Commercial P&C

$60,631

$118,595

Personal P&C

$47,205

$89,213

2010 Best Practices Study

Life & Health/Financial

$49,502

$99,462

Commissions Serviced per Service & Sales Support Staff

Agencies with Revenues Between $2,500,000 and $5,000,000

Average

Top 25%

Commercial P&C

$297,795

$506,198

Personal P&C

$171,057

$308,220

Life & Health/Financial

$293,981

$491,789

*Insufficient Data **Excludes any acquired revenue

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