2013 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Key Benchmarks Mgmt. Perspectives Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff 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

9.6%

10.0%

17.0%

Personal P&C

9.1%

6.6%

13.5%

Group Medical

11.9%

7.4%

17.2%

All Other Group

7.2%

15.5%

28.8%

Total Organic Growth Profit Pro Forma Pretax Profit

9.2%

10.7%

16.5%

17.9%

27.0%

18.1%

Pro Forma EBITDA

21.7%

28.3%

22.4%

Rule of 20 Score

20.0

25.5

27.3

Financial

Average

Top 25%

Current Ratio

1.17:1

1.49:1

Receivable/Payable Ratio

57.8%

31.9%

Accounts Receivables > 60 Days

3.2%

0.7%

Accounts Receivables > 90 Days

3.7%

-3.1%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$195,166

$211,497

$210,957

Compensation per Employee

$124,863

$122,682

$138,261

Spread per Employee

$70,302

$88,815

$72,696

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$111,507

$185,942

Personal P&C

$44,516

$68,652

2013 Best Practices Study

Life & Health/Financial

$150,516

$269,195

Service Staff Total Payroll as % of Line of Business Revenue Average

Agencies with Revenues Over $25,000,000

# of Service Staff

Commercial P&C

19.8%

96.1

Personal P&C

25.1%

13.9

Group Life & Health/Financial

15.3%

33.2

*Excludes any acquired revenue

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