2013 Best Practices Study

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

Revenues

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

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

42.0%

35.7%

38.9%

Bonds

0.7%

0.4%

0.7%

Personal Commissions Value Added Services

46.0%

54.2%

46.3%

0.4% 5.5%

0.0% 5.5%

0.0% 6.4%

Contingent/Bonus

Total P&C

94.7%

95.8%

92.3%

Life & Health/Financial Group Medical Commissions & Fees All Other Group Commissions & Fees Individual L&H Commissions & Fees

2.3% 0.4% 2.0% 0.1% 4.8% 0.1% 0.4%

0.8% 0.1% 2.8% 0.0% 3.8% 0.0% 0.4%

3.0% 0.1% 3.2% 0.0% 6.4% 0.0% 1.3%

Bonus/Overrides

Total L&H/Financial

Investments

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

0.3%

0.0%

0.0%

Net Revenues

99.7%

100.0%

100.0%

Revenue by Source (% of Gross Revenues)

Average

+25% Profit

+25% Growth

60.0%

50.0%

40.0%

30.0%

2013 Best Practices Study

20.0%

% Total Revenue

Agencies with Revenues Under $1,250,000

10.0%

0.0%

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

L&H Group Medical Comm & Fees

L&H All Other Group Comm & Fees

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

Comm & Fees

Comm & Fees

Comm & Fees

7