2014 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

7.5%

6.5%

15.8%

Producer Info

Personal P&C

5.5%

3.6%

9.0%

Service Staff Info

Group Medical

-3.5%

-1.5%

-3.3%

Technology

All Other Group

-7.9%

*

12.3%

Total Organic Growth Profit Pro Forma Pretax Profit

7.8%

6.0%

19.1%

Insurance Carriers

Appendix

24.8%

41.2%

19.8%

Pro Forma EBITDA

27.9%

43.1%

22.4%

Rule of 20 Score

20.8

26.8

25.7

Financial

Average

Top 25%

Current Ratio

1.37:1

1.99:1

Receivable/Payable Ratio

59.1%

0.1%

Accounts Receivables > 60 Days

12.7%

1.1%

Accounts Receivables > 90 Days

5.9%

-0.9%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$156,595

$170,253

$139,829

Compensation per Employee

$92,306

$86,511

$85,039

Spread per Employee

$64,289

$83,742

$54,790

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$66,268

$121,036

Personal P&C

$47,682

$95,934

2014 Best Practices Study

Life & Health/Financial

$49,850

$107,080

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

Agencies with Revenues Between $2,500,000 and $5,000,000

# of Service Staff

Commercial P&C

19.2%

6.9

Personal P&C

24.5%

5.1

Group Life & Health/Financial

20.1%

1.3

*Insufficient Data

55

*Excludes any acquired revenue