2010 Best Practices Study

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

Revenue by Aquisition

Mgmt. Perspectives

Profile

Acquired Revenues

Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Expenses

Profitability

Acquisitions Made in Last 12 Months

5.0%

$28,923

7.5%

Employee Overview

Producer Info

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Staff Service Info

Average

* * *

Average

* * *

Technology

High Low

High Low

Insurance Carriers

*Insufficient Data

Appendix

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.8%

3.0%

3.0%

High Low

13.5%

1.1%

10 Largest Accounts

13.1% 33.6%

10.9%

12.6%

High Low

2.6%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life

63.9%

80.5%

50.0%

Disability

2.0%

1.0% 0.5% 0.5% 0.0%

0.0% 0.0% 0.0%

Dental & Vision

11.7%

Retirement/Pension

0.1% 9.1% 2.2% 0.1%

Worksite/Voluntary/Supplement

25.0%

Long-Term Care

12.0%

0.0% 0.0%

2010 Best Practices Study

Employee Benefits TPA

0.5% 5.0%

All Other

10.9%

25.0%

*Excludes Group Medical

Agencies with Revenues Under $1,250,000

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