2014 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks

Profile

Revenues

Key Benchmarks at a Glance

Expenses

Average

+25% Profit

+25% Growth

Profitability

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

Employee Overview

10.7%

8.9%

17.4%

Producer Info

Personal P&C

7.4%

10.6%

6.9%

Service Staff Info

Group Medical

7.5%

7.8%

29.3%

Technology

All Other Group

1.0%

11.0%

-1.1%

Total Organic Growth Profit Pro Forma Pretax Profit

9.6%

9.3%

19.0%

Insurance Carriers

Appendix

19.2%

27.1%

17.5%

Pro Forma EBITDA

21.7%

28.5%

20.7%

Rule of 20 Score

20.3

23.6

28.8

Financial

Average

Top 25%

Current Ratio

1.26:1

2.02:1

Receivable/Payable Ratio

51.3%

10.5%

Accounts Receivables > 60 Days

10.2%

1.1%

Accounts Receivables > 90 Days

7.3%

-5.2%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$179,711

$205,213

$178,529

Compensation per Employee

$116,404

$120,665

$114,420

Spread per Employee

$63,308

$84,548

$64,109

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$91,816

$183,692

Personal P&C

$54,898

$94,922

2014 Best Practices Study

Life & Health/Financial

$96,802

$167,392

Service Staff Total Payroll as % of Line of Business Revenue Average

Agencies with Revenues Between $10,000,000 and $25,000,000

# of Service Staff

Commercial P&C

20.3%

28.2

Personal P&C

26.0%

12.4

Group Life & Health/Financial

16.0%

10.5

*Excludes any acquired revenue

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