2013 Best Practices Study

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

Average Total Revenues: $7,182,620 Profile (of Agencies in this Study Group)

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Population Density of Metropolitan AreasWhere Home Office is Located Average

+25% Profit

+25% Growth

Less than 50,000 50,000 – 250,000 250,000 – 1,000,000 More than 1,000,000 Corporate Structure C

25.6% 23.3% 14.0% 37.2%

30.0% 30.0% 10.0% 30.0% 10.0% 60.0% 10.0% 20.0%

10.0% 20.0%

0.0%

70.0%

18.6% 60.5%

10.0% 60.0% 10.0% 20.0%

S

Partnership

7.0%

LLC

14.0%

Sole Proprietorship

0.0%

0.0%

0.0%

Average Number of Agency Locations (Main Offices and Branch Offices)

3.3

2.8

3.7

# of States Offices are Located in

1.2

1.1

1.0

Agency has an ESOP

9.3%

20.0% 59.7%

0.0% 0.0%

% of Stock Owned by ESOP

64.6%

Shareholders Number of Shareholders (excluding ESOP)

4.4

4.4

3.4

High Low

13.0

1.0

Ownership Percentage % Owned by Largest Shareholder

56.8%

63.0%

74.0%

High Low

100.0%

12.0%

Shareholder Age Current Age of Largest Shareholder

57.9

61.7

57.6

Parent Corporation

Average

% of Agencies Owned by Another Corporation

7.3%

Description of Parent Corporation Financial Institution

33.3% 33.3% 33.3%

National Broker

Other

Member of Group % of Agencies Belonging to a Franchise, Cluster, Alli- ance/Network or Aggregator Group

Groups included Assurex Global, SIAA, IIANC, Master Vision Partners, Insurors Group, Intersure, Keystone Insurers Group, Benefits Advisors Network, Northern United Agents Alliance, Combined Agents of America, Insurance & Risk Managers and ARM South.

27.9%

2013 Best Practices Study

Reason for Joining Franchise/Cluster/etc.

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

Other 28.6%

Other included sharing ideas with agencies of like size and benchmarking.

Profit Sharing 57.1%

102

Back Office Support 14.3%