2010 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

-2.2%

-4.3%

4.6%

Staff Service Info

Personal P&C

5.0%

5.0%

8.9%

Group Medical

2.0%

-0.2%

13.1%

Technology

All Other Group

5.8%

15.5%

7.5%

Insurance Carriers

Total Organic Growth

0.8%

1.7%

10.0%

Appendix

Profit Pro Forma Pretax Profit

19.6%

31.6%

21.4%

Pro Forma EBITDA

22.9%

33.7%

23.9%

Rule of 20 Score

11.8

17.8

23.0

Financial

Average

Top 25%

Current Ratio

1.35:1

2.03:1

Receivable/Payable Ratio

38.3%

-4.0%

Accounts Receivables > 60 Days

-0.9%

3.1%

Accounts Receivables > 90 Days

-4.9%

2.3%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$162,267

$195,644

$185,835

Compensation per Employee

$107,680

$112,758

$117,989

Spread per Employee

$54,586

$82,886

$67,846

Annual New Commission Generated per Validated Producer

Average

Top 25%

Commercial P&C

$66,335

$117,175

Personal P&C

$47,270

$92,854

2010 Best Practices Study

Life & Health/Financial

$106,151

$232,230

Commissions Serviced per Service & Sales Support Staff

Agencies with Revenues Between $5,000,000 and $10,000,000

Average

Top 25%

Commercial P&C

$274,768

$492,254

Personal P&C

$191,313

$313,163

Life & Health/Financial

$325,474

$731,369

*Excludes any acquired revenue

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