2014 Best Practices Study

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

Key Benchmarks

Revenues

Profile Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

41.2%

27.0%

29.6%

Profitability

Bonds

0.4%

0.1%

0.2%

Employee Overview

Personal Commissions Value Added Services

45.2%

60.9%

57.6%

0.4% 6.2%

0.0% 6.8%

1.0% 8.1%

Producer Info

Contingent/Bonus

Service Staff Info

Total P&C

93.5%

94.8%

96.5%

Technology

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

3.0% 0.4% 2.6% 0.0% 6.1% 0.1% 0.3%

1.0% 0.1% 4.1% 0.0% 5.1% 0.0% 0.0%

1.4% 0.0% 1.6% 0.2% 3.3% 0.0% 0.2%

Insurance Carriers

Appendix

Bonus/Overrides

Total L&H/Financial

Investments

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

0.3%

0.2%

0.0%

Net Revenues

99.7%

99.8%

100.0%

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 Under $1,250,000

10.0%

0.0%

P&C Commercial

L&H Group Medical Comm & Fees

L&H All Other

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

Comm & Fees

Group Comm & Fees

Comm & Fees

Comm & Fees

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