2013 Best Practices Study

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

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

47.1%

47.8%

41.6%

# of Accounts Total Revenue

70.0

62.1

71.0

$4,323,919

$3,978,822

$4,225,426

Revenue per Account

$61,740

$64,027

$59,513

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

18.3%

18.7%

17.2%

# of Accounts Total Revenue

109.0

100.7

120.3

$1,680,393

$1,561,063

$1,744,270

Revenue per Account

$15,412

$15,500

$14,505

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

11.5%

12.8%

11.3%

# of Accounts Total Revenue

149.9

149.6

166.9

$1,053,071

$1,066,028

$1,145,306

Revenue per Account

$7,023

$7,127

$6,863

Less than $5,000 % of Book

23.1%

20.7%

30.0%

# of Accounts Total Revenue

2,210.1

1,979.3

3,156.3

$2,054,220

$1,724,335

$3,053,527

Revenue per Account

$641

$871

$436

(as measured by number of lives)

Average

+25% Profit

+25% Growth

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

54.3%

43.0%

38.7%

# of Accounts Total Revenue

34.8

21.0

17.5

$1,888,244

$1,086,455

$1,136,969

Revenue per Account

$54,322

$51,736

$64,970

50 - 100 Lives

% of Book

18.2%

21.5%

19.0%

# of Accounts Total Revenue

38.4

29.1

30.3

$631,988 $16,458

$543,437 $18,647

$560,101 $18,465

2013 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

10.3%

14.0%

14.5%

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

# of Accounts Total Revenue

50.3

67.9

43.0

$359,563

$353,156

$427,266

Revenue per Account

$7,151

$5,204

$9,936

Under 25 Lives

% of Book

17.2%

21.6%

27.8%

137

# of Accounts Total Revenue

377.1

195.3

429.5

$575,629

$545,037

$815,935

Revenue per Account

$1,526

$2,791

$1,900