2013 Best Practices Study

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

Revenue by Account Size (as measured by Comm. & Fees – not premium)

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

Average

+25% Profit

+25% Growth

Commercial P&C Greater than $25,000 % of Book

18.1%

26.1%

16.6%

# of Accounts Total Revenue

5.2

5.6

5.5

$235,800 $45,286

$231,328 $41,125

$276,811 $50,329

Revenue per Account

Between $10,000 and $25,000 % of Book

14.1%

16.4%

10.3%

# of Accounts Total Revenue

11.2

10.8

9.1

$156,471 $13,927

$145,342 $13,520

$129,050 $14,142

Revenue per Account

Between $5,000 and $10,000 % of Book

13.7%

14.0%

11.4%

# of Accounts Total Revenue

22.7

16.8

21.8

$152,221

$123,841

$142,792

Revenue per Account

$6,713

$7,394

$6,565

Less than $5,000 % of Book

54.1%

43.6%

61.6%

# of Accounts Total Revenue

1,276.9

980.0

1,815.1

$619,281

$441,520

$769,560

Revenue per Account

$485

$451

$424

(as measured by number of lives)

Average

+25% Profit

+25% Growth

Group L&H/Financial Over 100 Lives % of Book

21.1%

40.5%

35.6%

# of Accounts Total Revenue

2.7

*

*

$113,523 $42,571

* *

* *

Revenue per Account

50 - 100 Lives

% of Book

14.8%

14.4%

10.6%

# of Accounts Total Revenue

3.0

2.3

2.0

$39,323 $17,736

$28,067 $10,106

$33,033 $13,231

2013 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

16.3%

12.5%

10.9%

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

# of Accounts Total Revenue

6.6

12.0

5.3

$40,487 $6,120

$26,333 $2,194

$27,232 $5,187

Revenue per Account

Under 25 Lives

% of Book

47.9%

32.6%

43.0%

41

# of Accounts Total Revenue

67.3

145.0

86.5

$46,924

$34,334

$61,574

Revenue per Account

$503

$237

$705

*Insufficient Data