2014 Best Practices Study

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

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

Key Benchmarks

Profile Revenues

Average

+25% Profit

+25% Growth

Commercial P&C Greater than $25,000 % of Book

Expenses

45.6%

51.1%

53.2%

Profitability

# of Accounts Total Revenue

64.8

61.3

64.4

$4,039,967

$4,195,592

$4,261,388

Employee Overview

Revenue per Account

$62,351

$68,499

$66,196

Producer Info

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

18.2%

16.6%

16.8%

Service Staff Info

# of Accounts Total Revenue

105.2

86.1

85.8

Technology

$1,611,042

$1,363,341

$1,348,298

Revenue per Account

$15,313

$15,830

$15,724

Insurance Carriers

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

Appendix

12.1%

9.1%

8.5%

# of Accounts Total Revenue

152.8

105.9

97.6

$1,067,218

$750,354

$681,501

Revenue per Account

$6,983

$7,087

$6,981

Less than $5,000 % of Book

24.1%

23.2%

21.4%

# of Accounts Total Revenue

2,112.5

1,658.9

1,434.4

$2,075,680

$1,902,053

$1,713,273

Revenue per Account

$611

$470

$445

(as measured by number of lives)

Average

+25% Profit

+25% Growth

Group L&H/Financial Over 100 Lives % of Book

54.3%

55.1%

66.6%

# of Accounts Total Revenue

28.5

28.2

46.7

$1,657,013

$1,884,765

$2,609,431

Revenue per Account

$58,141

$66,633

$55,859

50 - 100 Lives

% of Book

17.5%

22.2%

13.5%

# of Accounts Total Revenue

29.7

34.8

33.6

$532,665 $17,905

$758,870 $21,771

$528,936 $15,756

2014 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

10.9%

11.0%

7.2%

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

# of Accounts Total Revenue

49.4

73.4

63.0

$346,339

$375,008

$281,951

Revenue per Account

$7,015

$5,107

$4,475

Under 25 Lives

% of Book

17.3%

11.7%

12.7%

# of Accounts Total Revenue

461.3

280.8

241.3

112

$509,192

$399,997

$496,194

Revenue per Account

$1,104

$1,424

$2,056