2014 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Key Benchmarks

Revenues

Profile Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

51.5%

45.2%

48.7%

Profitability

Bonds

1.4%

0.3%

0.6%

Employee Overview

Personal Commissions Value Added Services

24.1%

28.4%

21.7%

1.7% 7.8%

5.5% 9.0%

5.6% 9.1%

Producer Info

Contingent/Bonus

Service Staff Info

Total P&C

86.5%

88.4%

85.7%

Technology

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

8.4% 2.2% 1.2% 0.8%

7.9% 1.9% 1.1% 0.2%

8.9% 1.6% 1.6% 1.0%

Insurance Carriers

Appendix

Bonus/Overrides

Total L&H/Financial

12.6%

11.2%

13.2%

Investments

0.2% 0.7%

0.1% 0.4%

0.1% 1.0%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.0%

0.0%

0.1%

Net Revenues

99.0%

100.0%

99.9%

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 $5,000,000 and $10,000,000

10.0%

0.0%

L&H All Other Group Comm & Fees

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

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

Comm & Fees

Comm & Fees

Comm & Fees

83