2014 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

Key Benchmarks

Profile

Revenues

Key Benchmarks at a Glance

Expenses

Average

+25% Profit

+25% Growth

Profitability

Growth Organic Growth By Line of Business* Commercial P&C

Employee Overview

7.1%

7.3%

12..0%

Producer Info

Personal P&C

2.6%

3.8%

4.0%

Service Staff Info

Group Medical

13.4%

15.8%

17.2%

Technology

All Other Group

4.9%

-9.6%

-2.6%

Total Organic Growth Profit Pro Forma Pretax Profit

8.8%

7.5%

18.9%

Insurance Carriers

Appendix

16.8%

25.6%

14.8%

Pro Forma EBITDA

19.9%

27.1%

18.4%

Rule of 20 Score

19.0

21.3

26.6

Financial

Average

Top 25%

Current Ratio

1.36:1

1.88:1

Receivable/Payable Ratio

52.6%

18.8%

Accounts Receivables > 60 Days

4.4%

0.6%

Accounts Receivables > 90 Days

3.2%

-5.2%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$203,873

$218,807

$210,296

Compensation per Employee

$131,686

$127,274

$135,612

Spread per Employee

$67,899

$76,111

$74,684

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$127,777

$227,160

Personal P&C

$51,360

$82,434

2014 Best Practices Study

Life & Health/Financial

$162,104

$283,438

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

Agencies with Revenues Over $25,000,000

# of Service Staff

Commercial P&C

21.0%

100.1

Personal P&C

26.7%

13.1

Group Life & Health/Financial

15.3%

35.1

*Excludes any acquired revenue

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