2012 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

0.9% 5.9% -1.8% -4.0%

3.3%

12.2%

Personal P&C

12.9%

9.9%

Group Medical All Other Group

2.4%

26.5%

*

*

Total Organic Growth Profit Pro Forma Pretax Profit

1.3%

2.6%

12.1%

25.0% 27.4%

41.8% 42.6%

30.4% 31.4%

Pro Forma EBITDA

Rule of 20 Score

15.8

24.8

27.7

Financial Current Ratio

1.71:1

3.65:1

Receivable/Payable Ratio

40.2% 15.2%

-8.6%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

2.3%

4.7%

-1.2%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$131,885 $75,272 $56,613 Average $51,431 $34,089 $31,261

$156,771 $61,104 $95,667 Top 25% $95,768 $52,453 $57,333 Top 25% $374,655 $294,782

$124,202 $62,916 $61,286

Compensation per Employee

Spread per Employee

Annual New Commission Generated per Validated Producer

Commercial P&C

Personal P&C

Life & Health/Financial

Commissions Serviced per Service & Sales Support Staff

2012 Best Practices Study

Average

Commercial P&C

$259,363 $189,608 $340,958

Agencies with Revenues Between $1,250,000 and $2,500,000

Personal P&C

Life & Health / Financial

*

* Insufficient Data **Excludes any acquired revenue

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