2013 Best Practices Study

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

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

27.5%

19.4%

30.7%

# of Accounts Total Revenue

11.8

9.4

13.9

$657,540 $55,768

$497,427 $52,669

$716,542 $51,550

Revenue per Account

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

16.3%

16.1%

18.4%

# of Accounts Total Revenue

25.4

27.0

27.2

$380,955 $14,993

$372,012 $13,778

$427,818 $15,729

Revenue per Account

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

12.8%

12.9%

12.8%

# of Accounts Total Revenue

43.0

45.7

42.4

$298,544

$296,934

$299,527

Revenue per Account

$6,939

$6,497

$7,064

Less than $5,000 % of Book

43.4%

51.6%

38.1%

# of Accounts Total Revenue

2,424.6

3,043.7

1,863.4

$1,012,872

$1,189,883

$887,485

Revenue per Account

$418

$391

$476

(as measured by number of lives)

Average

+25% Profit

+25% Growth

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

32.5%

33.8%

25.2%

# of Accounts Total Revenue

4.0

4.5

4.3

$161,603 $39,947

$116,590 $25,090

$177,096 $41,670

Revenue per Account

50 - 100 Lives

% of Book

24.1%

34.9%

15.0%

# of Accounts Total Revenue

8.9

16.8

5.0

$109,851 $12,378

$120,470

$70,453 $14,091

2013 Best Practices Study

Revenue per Account

$7,192

25 - 50 Lives

% of Book

14.9%

14.7%

10.1%

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

# of Accounts Total Revenue

13.6

9.0

13.2

$60,549 $4,442

$40,615 $4,513

$56,671 $4,293

Revenue per Account

Under 25 Lives

% of Book

28.5%

16.6%

49.7%

73

# of Accounts Total Revenue

120.1

23.9

194.1

$107,364

$28,687 $1,202

$200,037

Revenue per Account

$894

$1,030