2010 Best Practices Study

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

Mgmt. Perspectives

Revenue by Aquisition

Profile

Revenues

Acquired Revenues

Expenses

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Profitability

Employee Overview

Acquisitions Made in Last 12 Months

11.1%

$419,664

7.2%

Producer Info

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Staff Service Info

Multiples of Revenue Paid

Technology

Average

$497,567 $861,090 $33,464

Average

1.53x 2.60x 0.78x

Insurance Carriers

High Low

High Low

Appendix

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

4.4%

5.6%

5.7%

High Low

17.7%

1.1%

10 Largest Accounts

14.6% 47.9%

17.5%

14.5%

High Low

1.9%

Average

+25% Profit

+25% Growth

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

28.0% 18.7% 28.7%

29.8% 30.8% 20.9% 13.9%

24.9% 20.0% 22.1%

Disability

Dental & Vision

Retirement/Pension

5.6% 3.0% 3.3% 1.6%

7.4% 2.9% 6.6% 0.0%

Worksite/Voluntary/Supplement

1.6% 1.3% 0.0% 1.8%

2010 Best Practices Study

Long-Term Care

Employee Benefits TPA

All Other

11.0%

16.1%

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

*Excludes Group Medical

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