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

Expenses (as % of Net Revenues) — continued

Average

+25% Profit

+25% Growth

Administrative Expenses Amortization of Intangibles

1.5% 0.2% 0.8% 0.2% 2.7% 81.1% 18.9% 22.4%

0.4% 0.1% 0.4% 0.1%

0.5% 0.3% 0.4% 0.2%

Officer Life

Interest

Other

Total Administrative

1.1%

1.4%

Total Expenses

65.2% 34.8% 36.2%

80.3% 19.7% 21.1%

Pre-Tax Profit (Loss)

EBITDA

Average

+25% Profit

+25% Growth

Expense Growth Over Prior Year Compensation Expense

5.8% 3.1% 6.0% -0.8%

7.4% -2.9% 3.6% -2.5%

11.1%

Selling Expense

3.9% 9.9%

Operating Expense

Administrative Expense

13.3%

Expenses (as % of Net Revenues)

Average

+25% Profit

+25% Growth

70%

63.4%

59.6%

60%

50.6%

50%

40%

30%

20%

15.1%

12.9%

11.2%

10%

3.7% 2.3% 2.6%

2.7%

2013 Best Practices Study

1.1% 1.4%

0%

Compensation

Selling

Operating

Administrative

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

80