2013 Best Practices Study

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

Revenue by Acquisition

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

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

20.9%

$428,856

5.6%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$947,473

Average

1.8x 2.7x 1.5x

High Low

$5,650,109

High Low

$41,962

Revenue by Account Concentration

Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.2%

3.5%

4.0%

High Low

11.6%

0.5%

10 Largest Accounts

13.9% 36.4%

12.9%

15.7%

High Low

2.3%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life 22.6%

32.2% 24.6% 17.2% 11.8% 13.5%

23.6% 19.5% 34.2% 10.4%

Disability

17.5% 27.1%

Dental & Vision

Retirement/Pension

6.9%

Worksite/Voluntary/Supplement

12.9%

4.5% 0.2% 5.6% 2.0%

2013 Best Practices Study

Long-Term Care

1.5% 5.2% 6.2%

0.6% 0.0% 0.0%

Employee Benefits TPA

All Other

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

*Excludes Group Medical

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