2013 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

12.1%

13.5%

21.4%

Personal P&C

8.1%

10.4%

8.4%

Group Medical

3.3%

3.3%

5.0%

All Other Group

5.7%

*

-4.1%

Total Organic Growth Profit Pro Forma Pretax Profit

9.5%

11.7%

20.0%

23.5%

39.4%

27.3%

Pro Forma EBITDA

27.1%

40.8%

28.7%

Rule of 20 Score

23.7

30.5

31.5

Financial

Average

Top 25%

Current Ratio

1.25:1

2.07:1

Receivable/Payable Ratio

51.2%

-0.4%

Accounts Receivables > 60 Days

12.9%

1.4%

Accounts Receivables > 90 Days

5.9%

-9.1%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$154,386

$181,995

$185,777

Compensation per Employee

$91,627

$94,630

$116,131

Spread per Employee

$62,759

$87,366

$69,646

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$55,563

$88,659

Personal P&C

$55,372

$106,691

2013 Best Practices Study

Life & Health/Financial

$64,925

$142,473

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

Agencies with Revenues Between $2,500,000 and $5,000,000

# of Service Staff

Commercial P&C

17.6%

6.5

Personal P&C

22.0%

4.2

Group Life & Health/Financial

18.3%

1.2

*Insufficient Data

67

*Excludes any acquired revenue