2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Average Total Revenues: $1,793,932 Profile (of Agencies in this Study Group)

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

Population Density of Metropolitan AreasWhere Home Office is Located Average

+25% Profit

+25% Growth

Less than 50,000 50,000 – 250,000 250,000 – 1,000,000 More than 1,000,000 Corporate Structure C

32.4% 29.4% 11.8% 26.5%

37.5% 50.0% 12.5%

37.5% 25.0%

0.0%

0.0%

37.5%

36.4% 45.5%

57.1% 28.6%

50.0% 37.5%

S

Partnership

0.0%

0.0%

0.0%

LLC

18.2%

14.3%

12.5%

Sole Proprietorship

0.0%

0.0%

0.0%

Average Number of Agency Locations (Main Offices and Branch Offices)

1.9

2.4

1.6

# of States Offices are Located in

1.0

1.1

1.0

Agency has an ESOP

0.0% 0.0%

0.0% 0.0%

0.0% 0.0%

% of Stock Owned by ESOP

Shareholders Number of Shareholders (excluding ESOP)

2.2 7.0 1.0

2.1

1.6

High Low

Ownership Percentage % Owned by Largest Shareholder

77.3%

77.1%

74.3%

High Low

100.0%

33.3%

Shareholder Age Current Age of Largest Shareholder

50.5

51.9

47.6

Parent Corporation

Average

% of Agencies Owned by Another Corporation

5.9%

Description of Parent Corporation Financial Institution

100.0%

National Broker

0.0% 0.0%

Other

Member of Group % of Agencies Belonging to a Franchise, Cluster, Alli- ance/Network or Aggregator Group

Groups included Iroquois Group, Combined Agents of America, Shared Agency Services, Professional Insur- ance Associates, Select Prism Group, Pacific Interstate Ins. Brokers, Hilb Group of Virginia, GA Agency Partners and North American Insurance Alliance.

47.1%

2013 Best Practices Study

Reason for Joining Franchise/Cluster/etc.

Agencies with Revenues Between $1,250,000 and $2,500,000

Other 6.3%

Other included perpetuation planning.

Market Access 56.3%

38

Profit Sharing 37.5%