2010 Best Practices Study

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

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

$3,700,391

$3,497,240

$2,763,121

Greater than $25,000 % of Book

Expenses

38.7%

45.6%

45.2%

Profitability

# of Accounts Total Revenue

26.4

26.7

26.8

$1,582,874

$1,770,068

$1,717,817

Employee Overview

Revenue per Account

$59,969

$66,378

$64,217

Producer Info

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

18.5%

16.0%

14.8%

Staff Service Info

# of Accounts Total Revenue

49.5

53.7

46.0

Technology

$720,645 $14,558

$558,980 $10,409

$451,235

Revenue per Account

$9,809

Insurance Carriers

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

14.3%

10.7% 125.3

10.4% 117.0

Appendix

# of Accounts Total Revenue

85.5

$555,143

$373,517

$315,779

Revenue per Account

$6,497

$2,981

$2,699

Less than $5,000

% of Book

28.5% 1,723.7

27.8% 1,523.0

29.6% 1,691.1

# of Accounts Total Revenue

$1,053,232

$971,680

$816,514

Revenue per Account

$611

$638

$483

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

Average

+25% Profit

+25% Growth

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

$1,209,861

$655,355

$1,378,274

Greater than $25,000 % of Book

45.9%

52.0%

57.1%

# of Accounts Total Revenue

12.2

7.0

14.1

$658,179 $54,179

$340,814 $48,688

$885,817 $62,713

Revenue per Account

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

20.6%

11.2%

15.1%

# of Accounts Total Revenue

18.3

10.2

17.0

$274,594 $14,997

$87,749 $8,603

$233,780 $13,752

Revenue per Account

2010 Best Practices Study

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

12.6%

12.3%

8.1% 21.5

# of Accounts Total Revenue

22.9

15.8

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

$162,263

$80,617 $5,092

$126,062

Revenue per Account

$7,086

$5,863

Less than $5,000

% of Book

21.0% 274.8

24.5%

19.7% 313.0

# of Accounts Total Revenue

87.0

$253,549

$160,800

$271,021

98

Revenue per Account

$923

$1,848

$866