2014 Best Practices Study

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

Revenue by Account Size (as measured by Comm. & Fees – not premium)

Key Benchmarks

Profile Revenues

Average

+25% Profit

+25% Growth

Commercial P&C Greater than $25,000 % of Book

Expenses

22.0%

44.0%

35.0%

Profitability

# of Accounts Total Revenue

6.7

12.3

9.8

$282,238 $42,000

$414,681 $33,623

$473,533 $48,320

Employee Overview

Revenue per Account

Producer Info

Between $10,000 and $25,000 % of Book

15.0%

20.7%

15.8%

Service Staff Info

# of Accounts Total Revenue

13.0

19.6

15.6

Technology

$178,750 $13,750

$233,872 $11,932

$213,877 $13,710

Revenue per Account

Insurance Carriers

Between $5,000 and $10,000 % of Book

Appendix

16.1%

16.9%

19.7%

# of Accounts Total Revenue

30.5

30.2

46.2

$191,520

$190,771

$266,655

Revenue per Account

$6,283

$6,317

$5,772

Less than $5,000 % of Book

46.9%

18.5%

29.4%

# of Accounts Total Revenue

1,350.5

268.6

879.0

$556,942

$208,988

$396,977

Revenue per Account

$412

$778

$452

(as measured by number of lives)

Average

+25% Profit

+25% Growth

Group L&H/Financial Over 100 Lives % of Book

18.0%

49.3%

29.8%

# of Accounts Total Revenue

2.3

2.7

2.3

$82,011 $36,449

$103,000 $38,625

$115,000 $49,286

Revenue per Account

50 - 100 Lives

% of Book

15.8%

20.3%

13.5%

# of Accounts Total Revenue

3.4

3.0

2.7

$43,546 $18,505

$42,333 $14,111

$52,000 $19,500

2014 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

14.6%

16.8%

14.4%

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

# of Accounts Total Revenue

5.5

6.7

5.0

$48,268 $8,704

$35,000 $5,250

$41,500 $8,300

Revenue per Account

Under 25 Lives

% of Book

51.6%

13.6%

42.3%

# of Accounts Total Revenue

72.4

*

25.8

34

$48,921

* *

$46,995 $4,747

Revenue per Account

$649

*Insufficient Data