2013 Best Practices Study

Analysis of Agencies with Revenues Over $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

54.1%

56.9%

57.4%

Bonds

3.7% 6.2% 1.3% 5.7%

3.9% 7.2% 1.0% 5.4%

5.4% 4.6% 2.7% 6.0%

Personal Commissions Value Added Services

Contingent/Bonus

Total P&C

70.9%

74.4%

76.1%

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

17.9%

13.2%

14.7%

6.1% 1.4% 2.0%

6.1% 2.0% 1.5%

3.9% 1.7% 1.4%

Bonus/Overrides

Total L&H/Financial

27.3%

22.8%

21.7%

Investments

0.6% 1.1%

0.6% 2.1%

1.0% 1.2%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

2.5%

1.1%

3.7%

Net Revenues

97.5%

98.9%

96.3%

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 Over $25,000,000

% Total Revenue

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

167

Comm & Fees

Comm & Fees

Comm & Fees