2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

9.1%

16.0%

18.6%

Personal P&C

5.3%

6.2%

6.9%

Group Medical

0.1%

2.7%

14.1%

All Other Group

-0.1%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

9.1%

10.4%

23.8%

28.3%

45.4%

30.6%

Pro Forma EBITDA

31.1%

46.5%

34.3%

Rule of 20 Score

24.7

33.8

36.4

Financial

Average

Top 25%

Current Ratio

2.25:1

3.87:1

Receivable/Payable Ratio

54.4%

-6.5%

Accounts Receivables > 60 Days

18.1%

2.9%

Accounts Receivables > 90 Days

7.9%

-1.8%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$136,820

$141,417

$146,938

Compensation per Employee

$76,399

$56,944

$79,608

Spread per Employee

$60,421

$84,472

$67,329

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$51,838

$93,642

Personal P&C

$24,511

$39,375

2013 Best Practices Study

Life & Health/Financial

$37,257

$38,410

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

Agencies with Revenues Between $1,250,000 and $2,500,000

# of Service Staff

Commercial P&C

21.4%

3.6

Personal P&C

23.7%

3.5

Group Life & Health/Financial

33.0%

0.8

*Insufficient Data *Excludes any acquired revenue

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