2013 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

Revenues

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

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

55.1%

45.7%

56.0%

Bonds

2.4%

0.9%

3.2%

Personal Commissions Value Added Services

24.3%

34.5%

22.1%

0.2% 8.0%

0.1%

0.2% 9.8%

Contingent/Bonus

10.0% 91.2%

Total P&C

90.0%

91.3%

Life & Health/Financial Group Medical Commissions & Fees All Other Group Commissions & Fees Individual L&H Commissions & Fees

6.4% 1.1% 1.5% 0.2% 9.2% 0.4% 0.4%

4.1% 0.6% 2.7% 0.4% 7.7% 0.7% 0.3%

6.3% 0.6% 0.8% 0.2% 7.9% 0.5% 0.3%

Bonus/Overrides

Total L&H/Financial

Investments

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.6%

3.3%

3.8%

Net Revenues

98.4%

96.7%

96.2%

Revenue by Source (% of Gross Revenues)

Average

+25% Profit

+25% Growth

60.0%

50.0%

40.0%

30.0%

2013 Best Practices Study

20.0%

% Total Revenue

Agencies with Revenues Between $2,500,000 and $5,000,000

10.0%

0.0%

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

L&H Group Medical Comm & Fees

L&H All Other Group Comm & Fees

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

Comm & Fees

Comm & Fees

Comm & Fees

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