2013 Best Practices Study

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

Revenue by Account Size (as measured by Comm. & Fees – not premium)

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

Average

+25% Profit

+25% Growth

Commercial P&C Greater than $25,000 % of Book

32.7%

23.1%

36.1%

# of Accounts Total Revenue

28.5

17.9

29.1

$1,562,490

$975,910 $54,520

$1,813,248

Revenue per Account

$54,916

$62,311

Between $10,000 and $25,000 % of Book

17.5%

13.8%

15.4%

# of Accounts Total Revenue

53.8

38.8

49.2

$814,402 $15,127

$582,339 $15,009

$772,301 $15,697

Revenue per Account

Between $5,000 and $10,000 % of Book

11.7%

11.3%

10.4%

# of Accounts Total Revenue

79.7

70.4

74.3

$546,196

$477,654

$520,930

Revenue per Account

$6,849

$6,785

$7,011

Less than $5,000 % of Book

38.1%

51.8%

38.2%

# of Accounts Total Revenue

3,603.0

4,906.4

3,937.0

$1,779,744

$2,188,341

$1,921,305

Revenue per Account

$494

$446

$488

(as measured by number of lives)

Average

+25% Profit

+25% Growth

Group L&H/Financial Over 100 Lives % of Book

43.0%

37.8%

50.9%

# of Accounts Total Revenue

12.1

6.0

19.4

$650,613 $53,928

$362,727 $60,454

$1,170,756

Revenue per Account

$60,259

50 - 100 Lives

% of Book

19.4%

12.2%

19.2%

# of Accounts Total Revenue

17.8

7.5

27.9

$275,095 $15,465

$97,791 $13,039

$441,025 $15,832

2013 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

14.4%

14.7%

10.8%

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

# of Accounts Total Revenue

23.1

15.2

30.7

$210,380

$117,809

$248,785

Revenue per Account

$9,110

$7,768

$8,100

Under 25 Lives

% of Book

23.3%

35.2%

19.1%

105

# of Accounts Total Revenue

254.6

125.3

393.0

$311,774

$211,389

$383,983

Revenue per Account

$1,217

$1,688

$977