2012 Best Practices Study

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

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

4.5% 2.9% -5.1% -3.4%

7.3% 3.4% -1.9%

4.0% 6.8% 2.5%

Personal P&C

Group Medical All Other Group

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

1.9%

5.4%

11.6%

23.6% 26.2%

40.9% 42.0%

28.6% 30.9%

Pro Forma EBITDA

Rule of 20 Score

16.1

28.8

25.2

Financial

Average

Top 25%

Current Ratio

1.42:1

2.80:1

Receivable/Payable Ratio

58.1% 37.1%

20.4%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

*

4.9%

-5.7%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$123,079 $65,465 $57,614

$185,418

$136,130 $64,289 $71,841

Compensation per Employee

$74,862

Spread per Employee

$110,556

Annual New Commission Generated per Validated Producer

Average $40,953 $22,333

Top 25%

Commercial P&C

$58,715

Personal P&C

* *

Life & Health/Financial

*

2012 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $249,047 $206,923

Agencies with Revenues Under $1,250,000

Commercial P&C

$187,999 $143,323 $115,558

Personal P&C

Life & Health / Financial

*

* Insufficient Data **Excludes any acquired revenue

2