2014 Best Practices Study

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

Key Benchmarks

Revenue Growth by Source (continued) Historical Organic Growth (in Net Revenue)

Profile Revenues

Expenses

Average

+25% Profit

+25% Growth

40%

Profitability

31.3%

30%

Employee Overview

20.0%

20%

19.1%

15.7% 14.1%

Producer Info

12.5%

12.1%

11.7%

12.2%

10.0%

9.5%

10%

7.8% 6.0%

7.6%

6.7%

4.1%

3.6%

Service Staff Info

3.0%

0.7%

1.1%

0.6%

0.2%

0%

–1.3%

–1.6%

Technology

–10%

2007

2008

2009

2010

2011

2012

2013

2014

Insurance Carriers

Appendix

Future Growth Percentage of agencies considering line of business as very important to growing agency’s revenue over the next 3 years

Surety-Bonding

27.1%

Personal P&C

81.3%

77.1%

Small Commercial P&C

Individual Life & Health

16.7%

Group Medical/Health Insurance

50.0%

35.4%

All Other Group Benefits

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2014 Best Practices Study

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

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