2013 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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

8.4%

7.9%

17.4%

Personal P&C

7.1%

3.6%

10.5%

Group Medical

13.9%

*

32.5%

All Other Group

7.5%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

6.9%

7.4%

19.2%

23.1%

38.6%

25.9%

Pro Forma EBITDA

30.3%

43.9%

33.9%

Rule of 20 Score

23.0

28.4

32.8

Financial

Average

Top 25%

Current Ratio

1.47:1

2.53:1

Receivable/Payable Ratio

48.6%

-20.2%

Accounts Receivables > 60 Days

44.9%

7.1%

Accounts Receivables > 90 Days

4.3%

0.0%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$121,438

$167,166

$144,442

Compensation per Employee

$61,327

$69,559

$61,750

Spread per Employee

$60,111

$97,607

$82,692

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$41,671

$78,757

Personal P&C

$19,940

$40,775

2013 Best Practices Study

Life & Health/Financial

*

*

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

Agencies with Revenues Under $1,250,000

# of Service Staff

Commercial P&C

24.2%

2.0

Personal P&C

23.7%

1.9

Group Life & Health/Financial

49.2%

0.4

*Insufficient Data

3

*Excludes any acquired revenue