2014 Best Practices Study

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

Key Benchmarks

Revenues

Profile Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

52.8%

59.1%

40.5%

Profitability

Bonds

3.5% 6.7% 1.9% 5.6%

4.2% 4.0% 1.2% 6.0%

2.7%

Employee Overview

Personal Commissions Value Added Services

11.1%

2.3% 6.4%

Producer Info

Contingent/Bonus

Service Staff Info

Total P&C

70.4%

74.6%

63.0%

Technology

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

19.4%

17.7%

21.7%

Insurance Carriers

5.9% 1.2% 1.7%

4.0% 1.4% 1.6%

8.6% 1.9% 2.7%

Appendix

Bonus/Overrides

Total L&H/Financial

28.2%

24.7%

35.0%

Investments

0.5% 0.8%

0.1% 0.6%

0.8% 1.3%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

2.4%

2.0%

3.1%

Net Revenues

97.6%

98.0%

96.9%

Revenue by Source (% of Gross Revenues)

Average

+25% Profit

+25% Growth

60.0%

50.0%

40.0%

30.0%

2014 Best Practices Study

20.0%

% Total Revenue

Agencies with Revenues Over $25,000,000

10.0%

0.0%

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

L&H All Other Group Comm & Fees

L&H Group Medical Comm & Fees

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal

P&C VAS Fees

P&C Contingent/ Bonus

Comm & Fees

Comm & Fees

Comm & Fees

135