2014 Best Practices Study

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

Key Benchmarks

Revenues

Profile Revenues

(% by Source)

Average

+25% Profit

+25% Growth

Property & Casualty Commercial Commissions & Fees

Expenses

45.6%

47.8%

46.2%

Profitability

Bonds

3.3%

6.3%

1.5%

Employee Overview

Personal Commissions Value Added Services

30.5%

20.4%

27.5%

0.1%

0.2%

0.2%

Producer Info

Contingent/Bonus

10.1% 89.7%

10.8% 85.5%

10.2% 85.6%

Service Staff Info

Total P&C

Technology

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

5.8% 0.7% 2.6% 0.5% 9.6% 0.2% 0.5%

6.9% 0.1% 6.4% 0.4%

11.3%

Insurance Carriers

0.4% 1.7% 0.3%

Appendix

Bonus/Overrides

Total L&H/Financial

13.9%

13.6%

Investments

0.5% 0.1%

0.3% 0.4%

Miscellaneous

Gross Revenues

100.0%

100.0%

100.0%

Brokerage Commission Expense

1.5%

0.0%

4.7%

Net Revenues

98.5%

100.0%

95.3%

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 Between $1,250,000 and $2,500,000

10.0%

0.0%

L&H Bonus/ Overrides

Investments Miscellaneous

L&H Individual

L&H All Other

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

Group Comm & Fees

Comm & Fees

Comm & Fees

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