2013 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

11.0%

10.6%

18.7%

Personal P&C

5.2%

5.2%

12.2%

Group Medical

1.1%

-10.2%

5.4%

All Other Group

4.6%

-8.5%

2.5%

Total Organic Growth Profit Pro Forma Pretax Profit

8.9%

9.2%

18.8%

21.7%

37.2%

18.3%

Pro Forma EBITDA

25.2%

39.4%

21.6%

Rule of 20 Score

21.5

27.3

26.1

Financial

Average

Top 25%

Current Ratio

1.12:1

1.71:1

Receivable/Payable Ratio

47.6%

2.9%

Accounts Receivables > 60 Days

9.1%

1.2%

Accounts Receivables > 90 Days

6.2%

-4.5%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$166,186

$198,245

$165,396

Compensation per Employee

$102,662

$109,475

$106,273

Spread per Employee

$63,524

$88,770

$59,123

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$71,317

$125,924

Personal P&C

$48,318

$93,466

2013 Best Practices Study

Life & Health/Financial

$80,451

$140,324

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

Agencies with Revenues Between $5,000,000 and $10,000,000

# of Service Staff

Commercial P&C

21.1%

14.0

Personal P&C

23.9%

8.8

Group Life & Health/Financial

15.8%

3.5

*Excludes any acquired revenue

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