2013 Best Practices Study

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

Average Total Revenues: $3,318,536 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

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

31.1% 35.6% 11.1% 22.2%

54.5% 27.3%

36.4% 36.4%

0.0%

9.1%

18.2%

18.2%

20.0% 51.1%

27.3% 36.4%

27.3% 54.5%

S

Partnership

2.2%

9.1%

0.0%

LLC

26.7%

27.3%

18.2%

Sole Proprietorship

0.0%

0.0%

0.0%

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

1.5

1.7

1.1

# of States Offices are Located in

1.1

1.0

1.0

Agency has an ESOP

2.2%

0.0% 0.0%

0.0% 0.0%

% of Stock Owned by ESOP

100.0%

Shareholders Number of Shareholders (excluding ESOP)

3.3 7.0 1.0

3.7

3.1

High Low

Ownership Percentage % Owned by Largest Shareholder

60.9%

63.8%

67.4%

High Low

100.0%

20.0%

Shareholder Age Current Age of Largest Shareholder

56.1

59.6

54.9

Parent Corporation

Average

% of Agencies Owned by Another Corporation

9.3%

Description of Parent Corporation Financial Institution

25.0% 25.0% 50.0%

National Broker

Other

Member of Group % of Agencies Belonging to a Franchise, Cluster, Alliance/Network or Aggregator Group

Groups included Combined Agents of America, Northlake Insurance Group, Shared Agency Services, Secure Risk Insurance Solutions, ARM of Illinois, Insurica Insurance Network, Assuralliance, SIAA, Consolidated Insurance Agents, and Trusted Insurance Alliance.

40.0%

2013 Best Practices Study

Reason for Joining Franchise/Cluster/etc.

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

Market Access 25.0%

Other 12.5%

Other included association with quality agents and association with other professional agents.

70

Profit Sharing 62.5%

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