2014 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

8.3%

9.6%

14.0%

Producer Info

Personal P&C

7.5%

8.5%

16.4%

Service Staff Info

Group Medical

1.2%

4.1%

17.8%

Technology

All Other Group

2.8%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

10.5%

11.8%

18.9%

Insurance Carriers

Appendix

23.0%

37.0%

27.5%

Pro Forma EBITDA

30.6%

42.6%

37.7%

Rule of 20 Score

23.7

30.3

35.3

Financial

Average

Top 25%

Current Ratio

1.74:1

3.24:1

Receivable/Payable Ratio

62.4%

-14.8%

Accounts Receivables > 60 Days

24.6%

1.4%

Accounts Receivables > 90 Days

8.0%

0.0%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$148,845

$200,208

$179,633

Compensation per Employee

$80,893

$82,280

$84,092

Spread per Employee

$67,951

$117,927

$95,541

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$57,126

$100,696

Personal P&C

$22,124

$32,506

2014 Best Practices Study

Life & Health/Financial

$51,649

$80,523

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

Agencies with Revenues Between $1,250,000 and $2,500,000

# of Service Staff

Commercial P&C

20.5%

3.8

Personal P&C

23.2%

2.9

Group Life & Health/Financial

68.5%

0.9

*Insufficient Data

29

*Excludes any acquired revenue