2013 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

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

Revenue Growth by Source

Average

+25% Profit

+25% Growth

Commercial P&C Renewals 1

97.4% 12.2%

97.4% 12.6%

105.0%

12.0%

New Business 2

1.4% 9.6%

1.1%

0.9%

Acquired Revenues 3

10.0% 11.1%

17.0% 17.9%

Organic Growth 4

11.0%

Total Growth 5

Bonds

Renewals 1

78.0% 28.4%

84.6% 30.4%

77.4% 33.6%

New Business 2

0.9% 6.5% 7.4%

0.0%

0.0%

Acquired Revenues 3

14.9% 14.9%

11.0% 11.0%

Organic Growth 4

Total Growth 5

Personal P&C

Renewals 1

96.2% 12.9%

96.8%

100.2%

9.8% 4.4% 6.6%

13.3%

New Business 2

5.0% 9.1%

5.4%

Acquired Revenues 3

13.5% 18.9%

Organic Growth 4

14.1%

11.0%

Total Growth 5

Value Added Services Renewals 1

78.4% 14.7% 0.0% -6.9% -6.9%

69.6% 18.7%

67.2% 15.9%

New Business 2

*Insufficient Data

0.0%

0.0%

Acquired Revenues 3

-11.7% -11.7%

-16.9% -16.9%

Organic Growth 4

Total Growth 5

1 Renewal Revenues as a % of prior year’s total revenues for this line of business. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the %, the more favorable the results.

2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results.

3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business.

4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

2013 Best Practices Study

Agencies with Revenues Over $25,000,000

“As a sales organization, the best measurement of our success is our ability to grow organically – and to do so profitably.”

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