2013 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

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

50.2%

55.9%

48.5%

Bonds

1.6%

1.0%

4.0%

Personal Commissions Value Added Services

15.1%

11.3%

20.0%

1.0% 5.9%

0.4% 6.8%

1.4% 7.6%

Contingent/Bonus

Total P&C

73.9%

75.5%

81.5%

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

16.1%

15.9%

13.1%

4.9% 2.9% 1.1%

3.2% 3.7% 0.8%

2.8% 0.7% 0.5%

Bonus/Overrides

Total L&H/Financial

25.0%

23.6%

17.2%

Investments

0.6% 0.6%

0.7% 0.2%

0.1% 1.2%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.6%

2.7%

0.3%

Net Revenues

98.4%

97.3%

99.7%

Revenue by Source (% of Gross Revenues)

Average

+25% Profit

+25% Growth

60.0%

50.0%

40.0%

2013 Best Practices Study

30.0%

20.0%

Agencies with Revenues Between $10,000,000 and $25,000,000

10.0%

0.0%

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

P&C Commercial

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

135