2013 Best Practices Study

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

Revenues

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

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

49.8%

46.8%

52.5%

Bonds

1.5%

0.2%

0.9%

Personal Commissions Value Added Services

23.2%

28.9%

22.3%

1.6% 7.0%

4.9% 8.0%

0.7% 6.6%

Contingent/Bonus

Total P&C

83.1%

88.8%

83.0%

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

10.7%

6.2% 1.9% 1.3% 0.2% 9.5% 1.1% 0.5%

10.9%

2.5% 1.4% 0.9%

1.5% 0.9% 0.6%

Bonus/Overrides

Total L&H/Financial

15.5%

13.9%

Investments

0.6% 0.8%

1.2% 2.0%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

0.6%

0.0%

0.5%

Net Revenues

99.4%

100.0%

99.5%

Revenue by Source (% of Gross Revenues)

Average

+25% Profit

+25% Growth

60.0%

50.0%

40.0%

30.0%

2013 Best Practices Study

20.0%

% Total Revenue

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

10.0%

0.0%

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 All Other Group Comm & Fees

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

Comm & Fees

Comm & Fees

Comm & Fees

103