2010 Best Practices Study

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

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

$401,165

$458,356

$429,002

Greater than $25,000 % of Book

Expenses

16.1%

23.7%

15.8%

Profitability

# of Accounts Total Revenue

9.3

19.4

7.7

$107,887 $11,619

$195,886 $10,097

$101,771 $13,275

Employee Overview

Revenue per Account

Producer Info

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

16.6%

17.2%

18.9%

Staff Service Info

# of Accounts Total Revenue

13.4

20.4

14.3

$86,166 $6,409

$142,063

$91,369 $6,412

Technology

Revenue per Account

$6,964

Insurance Carriers

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

19.1%

20.6% 106.9

22.5% 116.9

Appendix

# of Accounts Total Revenue

58.8

$89,330 $1,519

$106,015

$108,653

Revenue per Account

$992

$930

Less than $5,000

% of Book

48.2% 438.0

38.5% 280.0

42.7% 541.3

# of Accounts Total Revenue

$199,081

$176,371

$206,276

Revenue per Account

$455

$630

$381

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

Average

+25% Profit

+25% Growth

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

$100,258

$96,578

$561,978

Greater than $25,000 % of Book

12.9%

* * * *

* * * * * * * *

# of Accounts Total Revenue

2.0

$60,226 $30,113

Revenue per Account

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

18.3%

16.2%

# of Accounts Total Revenue

3.0

2.5

$42,804 $14,268

$47,037 $18,815

Revenue per Account

2010 Best Practices Study

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

26.0%

26.9%

32.7%

# of Accounts Total Revenue

5.9

7.0

7.0

Agencies with Revenues Under $1,250,000

$36,534 $6,192

$39,016 $5,574

$44,959 $6,423

Revenue per Account

Less than $5,000

% of Book

42.8%

51.4%

42.5%

# of Accounts Total Revenue

59.7

48.5

61.5

$42,913

$49,646 $1,024

$58,373

8

Revenue per Account

$719

$949