2011 Best Practices Study

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

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Key Benchmarks at a Glance

Average

+25% Profit

+25% Growth

Growth Organic Growth By Line of Business** Commercial P&C

-6.9%

-8.4% 7.9% 0.7%

7.7% 7.7% 5.5%

Personal P&C

5.5%

Group Medical All Other Group

-1.1% -0.4% -1.9%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

0.5%

9.1%

26.0% 28.5%

44.6% 45.2%

27.6% 28.2%

Pro Forma EBITDA

Rule of 20 Score

12.9

24.3

26.3

Financial

Average

Top 25%

Current Ratio

1.18:1

1.98:1

Receivable/Payable Ratio

65.1% 46.2% 17.2%

0.5% 9.7% 2.0%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$116,963 $64,086 $52,877 Average $41,133 $22,083 $27,167

$146,713 $62,710 $84,003 Top 25% $88,692 $38,292 $50,375 Top 25% $355,518 $323,938 $251,286

$118,983 $54,248 $64,735

Compensation per Employee

Spread per Employee

Annual New Commission Generated per Validated Producer

Commercial P&C

Personal P&C

Life & Health/Financial

2011 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Agencies with Revenues Under $1,250,000

Commercial P&C

$188,682 $158,720 $183,316

Personal P&C

Life & Health / Financial

* Insufficient Data **Excludes any acquired revenue

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