2013 Best Practices Study

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

Profile (of Agencies in this Study Group)

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

Average Total Revenues: $789,963

Population Density of Metropolitan AreasWhere Home Office is Located Average

+25% Profit

+25% Growth

Less than 50,000 50,000 – 250,000 250,000 – 1,000,000 More than 1,000,000 Corporate Structure C

54.5% 24.2% 15.2%

25.0% 25.0% 37.5% 12.5%

37.5% 25.0% 37.5%

6.1%

0.0%

18.2% 69.7%

0.0%

0.0%

S

75.0%

75.0%

Partnership

0.0% 9.1% 3.0%

0.0%

0.0%

LLC

25.0%

25.0%

Sole Proprietorship

0.0%

0.0%

Average Number of Agency Locations (Main Offices and Branch Offices)

1.3

1.0

1.4

# of States Offices are Located in

1.1

1.0

1.1

Agency has an ESOP

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

% of Stock Owned by ESOP

Shareholders Number of Shareholders (excluding ESOP)

2.4

2.0

1.4

High Low

12.0

1.0

Ownership Percentage % Owned by Largest Shareholder

74.6%

75.1%

86.4%

High Low

100.0%

30.0%

Shareholder Age Current Age of Largest Shareholder

53.7

51.0

52.1

Parent Corporation

Average

% of Agencies Owned by Another Corporation

3.3%

Description of Parent Corporation Financial Institution

100.0%

National Broker

0.0% 0.0%

Other

Member of Group % of Agencies Belonging to a Franchise, Cluster, Alli- ance/Network or Aggregator Group

Groups included Iroquois, Combined Agents of America, DCS Risk Management Group, ISU, SIAA, Bainswest, Continental Insurance Agency Alliance, TIA, Marketsource, Empire Spectrum Group and Consoli- dated Agencies, LLC.

39.4%

2013 Best Practices Study

Reason for Joining Franchise/Cluster/etc.

Other 15.4%

Agencies with Revenues Under $1,250,000

Other included to associate with quality agents and as a resource partnership.

Market Access 38.5%

6

Profit Sharing 46.2%