2014 Best Practices Study

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

Key Benchmarks

Revenues

Profile Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

50.3%

47.6%

38.4%

Profitability

Bonds

1.8%

0.3%

3.7%

Employee Overview

Personal Commissions Value Added Services

15.2%

14.2%

15.6%

0.8% 6.8%

0.1% 5.9%

1.2% 6.2%

Producer Info

Contingent/Bonus

Service Staff Info

Total P&C

74.8%

68.0%

65.2%

Technology

Life & Health/Financial Group Medical Commissions & Fees All Other Group Commissions & Fees Individual L&H Commissions & Fees

15.1%

19.1%

20.2%

Insurance Carriers

5.0% 2.9% 1.3%

5.8% 4.6% 1.9%

5.9% 6.3% 1.5%

Appendix

Bonus/Overrides

Total L&H/Financial

24.3%

31.4%

33.9%

Investments

0.4% 0.4%

0.4% 0.2%

0.4% 0.5%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.7%

0.6%

0.5%

Net Revenues

98.3%

99.4%

99.5%

Revenue by Source (% of Gross Revenues)

Average

+25% Profit

+25% Growth

60.0%

50.0%

40.0%

30.0%

2014 Best Practices Study

20.0%

% Total Revenue

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

10.0%

0.0%

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

L&H All Other Group Comm & Fees

L&H Group Medical Comm & Fees

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

Comm & Fees

Comm & Fees

Comm & Fees

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