2013 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

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

Key Benchmarks at a Glance

Average

+25% Profit

+25% Growth

Growth Organic Growth By Line of Business* Commercial P&C

12.6%

10.7%

19.9%

Personal P&C

8.3%

3.5%

16.7%

Group Medical

6.9%

-5.4%

20.9%

All Other Group

6.3%

1.9%

-10.1%

Total Organic Growth Profit Pro Forma Pretax Profit

10.4%

7.3%

20.0%

17.3%

26.5%

15.4%

Pro Forma EBITDA

20.1%

29.2%

18.7%

Rule of 20 Score

21.3

23.4

28.4

Financial

Average

Top 25%

Current Ratio

1.31:1

1.96:1

Receivable/Payable Ratio

49.4%

2.0%

Accounts Receivables > 60 Days

7.0%

1.5%

Accounts Receivables > 90 Days

3.8%

-7.6%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$181,989

$213,735

$180,744

Compensation per Employee

$121,594

$134,131

$119,577

Spread per Employee

$60,395

$79,604

$61,167

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$82,668

$134,254

Personal P&C

$47,224

$69,064

2013 Best Practices Study

Life & Health/Financial

$122,579

$222,525

Service Staff Total Payroll as % of Line of Business Revenue Average

Agencies with Revenues Between $10,000,000 and $25,000,000

# of Service Staff

Commercial P&C

19.5%

28.1

Personal P&C

24.9%

11.4

Group Life & Health/Financial

15.3%

9.7

*Excludes any acquired revenue

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