2011 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

49 1.4%

-2.6% 9.2% 3.7% 4.9%

6.3%

Personal P&C

4.8% 7.3% -2.2%

11.8%

Group Medical All Other Group

3.4%

*

Total Organic Growth Profit Pro Forma Pretax Profit

14.9% 19.4%

25.3% 27.6%

13.8% 15.7%

Pro Forma EBITDA

Rule of 20 Score

13.0

17.8

16.8

Financial

Average

Top 25%

Current Ratio

1.29:1

1.67:1

Receivable/Payable Ratio

50.5%

29.8%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

5.2% 2.0%

2.0% 1.0%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$182,933 $118,162

$189,725 $111,792

$174,064 $117,660

Compensation per Employee

Spread per Employee

$64,771

$77,934

$56,404

Annual New Commission Generated per Validated Producer

Average

Top 25% $204,240

Commercial P&C

$113,096

Personal P&C

$51,538

$96,701

Life & Health/Financial

$141,893

$254,771

2011 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $467,627 $684,431 $713,537

Agencies with Revenues Over $25,000,000

Commercial P&C

$373,096 $204,912 $422,608

Personal P&C

Life & Health / Financial

* Insufficient Data **Excludes any acquired revenue

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