2014 Best Practices Study

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

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

29.9%

21.5%

25.5%

Profitability

# of Accounts Total Revenue

12.3

9.4

11.5

$698,258 $56,718

$535,548 $56,705

$601,222 $52,488

Employee Overview

Revenue per Account

Producer Info

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

17.0%

12.7%

16.7%

Service Staff Info

# of Accounts Total Revenue

24.6

18.7

25.3

Technology

$379,540 $15,431

$284,293 $15,203

$392,951 $15,548

Revenue per Account

Insurance Carriers

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

Appendix

13.1%

12.0%

12.5%

# of Accounts Total Revenue

41.2

38.5

39.6

$291,869

$269,778

$294,178

Revenue per Account

$7,082

$7,007

$7,422

Less than $5,000 % of Book

40.0%

53.8%

45.4%

# of Accounts Total Revenue

1,660.9

2,872.5

2,042.8

$893,749

$1,208,670

$1,069,882

Revenue per Account

$538

$421

$524

(as measured by number of lives)

Average

+25% Profit

+25% Growth

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

32.0%

14.9%

38.2%

# of Accounts Total Revenue

5.8

1.3

4.3

$198,980 $34,369

$48,792 $36,594

$178,232 $41,937

Revenue per Account

50 - 100 Lives

% of Book

21.5%

19.0%

25.2%

# of Accounts Total Revenue

9.3

10.2

13.2

$106,004 $11,358

$37,404 $3,667

$94,050 $7,125

2014 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

14.2%

8.9%

20.5%

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

# of Accounts Total Revenue

13.0

4.8

18.0

$64,730 $4,994

$17,586 $3,664

$76,496 $4,250

Revenue per Account

Under 25 Lives

% of Book

32.3%

57.2%

16.0%

# of Accounts Total Revenue

120.6

72.0

47.6

60

$112,154

$62,503

$42,608

Revenue per Account

$930

$868

$896