2014 Best Practices Study

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

Key Benchmarks

Revenue Growth by Source

Profile Revenues

Average

+25% Profit

+25% Growth

Commercial P&C Renewals 1

Expenses

95.2% 13.1%

95.7% 13.9%

97.2% 16.8%

Profitability

New Business 2

Employee Overview

0.6% 8.3% 8.9%

0.0% 9.6% 9.6%

0.4%

Acquired Revenues 3

14.0% 14.4%

Organic Growth 4

Producer Info

Total Growth 5

Service Staff Info

Bonds P&C

68.8% 38.9%

62.5% 47.2%

93.3% 34.7%

Renewals 1

Technology

New Business 2

Insurance Carriers

0.5% 7.7% 8.2%

0.0% 9.7% 9.7%

0.0%

Acquired Revenues 3

Appendix

28.0% 28.0%

Organic Growth 4

Total Growth 5

Personal P&C

97.6%

97.8% 10.7%

105.3%

Renewals 1

9.9% 1.8% 7.5% 9.3%

11.1%

New Business 2

0.0% 8.5% 8.5%

4.1%

Acquired Revenues 3

16.4% 20.5%

Organic Growth 4

Total Growth 5

Value Added Services P&C Renewals 1

77.3% 47.2%

* * * * *

* * * * *

New Business 2

*Insufficient Data

0.0%

Acquired Revenues 3

24.5% 24.5%

Organic Growth 4

Total Growth 5

*Insufficient Data

1 Renewal Revenues as a % of prior year’s total revenues for this line of business. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the %, the more favorable the results.

2 New Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results.

3 Acquired Revenues as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business.

4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

2014 Best Practices Study

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

35