2013 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Revenue by Acquisition

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

Acquired Revenues

Average Commissions Acquired

% of Agencies Acquiring

% of Net Revenues

Acquisitions Made in Last 12 Months

6.1%

*

*

What the Typical Transactions Looked Like Revenues Acquired per Transaction

Multiples of Revenue Paid

Average

* * *

Average

* * *

High Low

High Low

*Insufficient Data

Revenue by Account Concentration

Average

+25% Profit

+25% Growth

% of Revenue Derived from: Largest Account

5.5%

2.4%

6.5%

High Low

23.4%

0.5%

10 Largest Accounts

15.8% 46.4%

10.1%

16.3%

High Low

1.1%

Average

+25% Profit

+25% Growth

“Other” Group Life & Health* Revenue (% from source) Life 47.5%

39.0%

* * * * * * * *

Disability

3.6%

0.7% 0.7% 3.3% 0.0%

Dental & Vision

23.5%

Retirement/Pension

1.1% 5.6% 6.7%

Worksite/Voluntary/Supplement

2013 Best Practices Study

Long-Term Care

20.0% 36.3%

Employee Benefits TPA

12.1%

All Other

0.0%

0.0%

Agencies with Revenues Under $1,250,000

*Insufficient Data *Excludes Group Medical

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