2010 Best Practices Study

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

Profile (of Agencies in this Study Group) A. Average Total Revenues: $6,883,762 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

15.6% 33.3% 22.2% 28.9%

15.8% 29.8% 21.1% 33.3%

15.9% 31.9% 20.3% 31.9%

Profitability

Employee Overview

Producer Info

Staff Service Info

31.1% 53.3%

26.3% 54.4%

24.6% 55.1%

S

Technology

Partnership

4.4%

7.0%

7.2%

Insurance Carriers

LLC

11.1%

12.3%

13.0%

Appendix

Sole Proprietorship

0.0%

0.0%

0.0%

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

3.1

2.5

2.8

# of States Offices are Located in

1.2

1.0

1.2

Agency has an ESOP

11.1% 48.3%

8.3%

0.0% 0.0%

% of Stock Owned by ESOP

20.0%

D. Shareholders Number of Shareholders (excluding ESOP)

4.5

4.1

4.1

High

11.0

Low

1.0

E. Ownership Percentage % Owned by Largest Shareholder

54.3%

60.6%

70.8%

High

100.0%

Low

7.2%

F. Shareholder Age Current Age of Largest Shareholder

56.6

54.7

55.9

G. Parent Corporation

Average

% of Agencies Owned by Another Corporation

7.0%

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

33.3%

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

0.0%

National Broker

Other

66.7%

H. Member of Group

“Groups” included Assurex, Intersure, Keystone, Insurance & Risk Managers, and Combined Agents of America

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

17.8%

95