2010 Best Practices Study

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

Profile (of Agencies in this Study Group) A. Average Total Revenues: $3,681,440 B. Population Density of Metropolitan Areas Where Home Office is Located Average

Mgmt. Perspectives

Profile

Revenues

+25% Profit

+25% Growth

Expenses

Less than 50,000 50,000 – 250,000 250,000 – 1,000,000 More than 1,000,000 C. Corporate Structure C

35.1% 18.9% 18.9% 27.0%

29.8% 21.3% 19.1% 29.8%

28.1% 19.3% 21.1% 31.6%

Profitability

Employee Overview

Producer Info

Staff Service Info

30.6% 50.0%

28.3% 52.2%

26.8% 55.4%

S

Technology

Partnership

2.8%

4.3%

5.4%

Insurance Carriers

LLC

16.7%

15.2%

12.5%

Appendix

Sole Proprietorship

0.0%

0.0%

0.0%

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

1.9

2.0

1.4

# of States Offices are Located in

1.2

1.1

1.0

Agency has an ESOP

16.2% 34.3%

0.0% 0.0%

20.0% 82.5%

% of Stock Owned by ESOP

D. Shareholders Number of Shareholders (excluding ESOP)

2.9 7.0 1.0

3.0

2.6

High

Low

E. Ownership Percentage % Owned by Largest Shareholder

60.6%

66.7%

67.3%

High

100.0%

Low

16.0%

F. Shareholder Age Current Age of Largest Shareholder

54.7

57.5

55.8

G. Parent Corporation

Average

% of Agencies Owned by Another Corporation

0%

2010 Best Practices Study

“Other” included AAA, joint venture, another insurance agency, holding company or large ESOP with number of diversified industries.

Description of Parent Corporation Financial Institution

0.0% 0.0% 0.0%

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

National Broker

Other

H. Member of Group

“Groups” included Combined Agents of America, Shared Agency Services, Trusted Insurance Alliance, and Insurors Group.

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

13.5%

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