2014 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Key Benchmarks

Revenues

Profile Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

53.3%

47.6%

54.7%

Profitability

Bonds

1.9%

0.7%

1.2%

Employee Overview

Personal Commissions Value Added Services

26.5%

35.4%

27.1%

0.2% 8.5%

0.1%

0.0% 8.9%

Producer Info

Contingent/Bonus

10.9% 94.7%

Service Staff Info

Total P&C

90.4%

91.9%

Technology

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

5.7% 1.3% 1.4% 0.2% 8.6% 0.7% 0.4%

2.8% 0.6% 0.5% 0.3% 4.3% 0.6% 0.4%

3.5% 1.6% 0.9% 0.0% 6.1% 1.6% 0.4%

Insurance Carriers

Appendix

Bonus/Overrides

Total L&H/Financial

Investments

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.4%

2.4%

1.2%

Net Revenues

98.6%

97.6%

98.8%

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 $2,500,000 and $5,000,000

10.0%

0.0%

L&H All Other

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

L&H Group Medical Comm & Fees

Group Comm & Fees

Comm & Fees

Comm & Fees

Comm & Fees

57