2012 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service 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

3.3% 4.3% 2.8%

4.1% 3.8% -4.8%

10.0% 10.8% -1.5%

Personal P&C

Group Medical All Other Group

21.8%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

5.6%

7.7%

21.9%

14.6% 18.4%

22.9% 24.8%

17.6% 19.2%

Pro Forma EBITDA

Rule of 20 Score

16.2

21.2

33.4

Financial

Average

Top 25%

Current Ratio

1.27:1

1.66:1

Receivable/Payable Ratio

50.2%

22.7%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

2.8% 0.2%

0.6%

-6.6%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$187,040 $121,963

$199,255 $115,655

$174,240 $116,069

Compensation per Employee

Spread per Employee

$65,076

$83,600

$58,172

Annual New Commission Generated per Validated Producer

Average

Top 25% $173,315

Commercial P&C

$100,091

Personal P&C

$57,265

$87,798

Life & Health/Financial

$143,142

$267,806

2012 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $440,921 $477,623 $685,837

Agencies with Revenues Over $25,000,000

Commercial P&C

$359,798 $193,722 $446,184

Personal P&C

Life & Health / Financial

* Insufficient Data **Excludes any acquired revenue

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