2012 Best Practices Study

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

Revenue by Acquisition

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Staff Service Info Technology Insurance Carriers Appendix

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

Percentage of Net Revenues

Acquisitions Made in Last 12 Months

6.0%

*

*

*Insufficient Data

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

*

Average

*

High

*

High

*

Low

*

Low

*

*Insufficient Data

Revenue by Account Concentration Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

3.7%

3.4%

3.3%

High Low

10.3%

1.0%

10 Largest Accounts

12.6% 40.8%

8.9%

10.7%

High Low

1.2%

Average

+25% Profit

+25% Growth

“Other” Group Revenue**(% from source) Life

43.8% 11.1% 18.8%

32.3% 27.3% 35.7%

13.3% 26.7%

Disability

Dental & Vision

1.7% 0.0%

Retirement/Pension

0.0% 7.3% 0.5% 0.8%

0.0% 0.0% 1.7% 3.0% 0.0%

Worksite/Voluntary/Supplement

25.0%

Long-Term Care

1.7% 0.0%

Employee Benefits TPA

2012 Best Practices Study

All Other

17.7%

31.7%

**Excludes Group Medical

Agencies with Revenues Under $1,250,000

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