2013 Best Practices Study

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

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

27.3%

$539,663

3.1%

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

$768,441

Average

1.3x 1.9x 0.5x

High Low

$2,500,000

High Low

$59,185

Revenue by Account Concentration

Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.1%

3.1%

3.6%

High Low

12.5%

0.6%

10 Largest Accounts

13.3% 33.5%

14.2%

13.2%

High Low

2.7%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life 21.1%

11.3% 23.4% 23.0%

41.1% 11.0% 30.0% -0.2%

Disability

15.0% 22.0%

Dental & Vision

Retirement/Pension

4.8% 8.8% 1.1% 4.5%

4.8% 5.0% 1.9% 1.4%

Worksite/Voluntary/Supplement

3.7% 0.0% 0.8%

2013 Best Practices Study

Long-Term Care

Employee Benefits TPA

All Other

22.5%

29.0%

13.7%

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

*Excludes Group Medical

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