2014 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

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

11.3%

14.0%

21.5%

Producer Info

Personal P&C

5.3%

5.3%

7.3%

Service Staff Info

Group Medical

-2.0%

-2.4%

-0.7%

Technology

All Other Group

3.9%

2.3%

-17.3%

Total Organic Growth Profit Pro Forma Pretax Profit

8.1%

9.5%

17.4%

Insurance Carriers

Appendix

21.8%

34.9%

23.8%

Pro Forma EBITDA

25.1%

37.2%

27.9%

Rule of 20 Score

20.3

27.7

29.5

Financial

Average

Top 25%

Current Ratio

1.28:1

1.82:1

Receivable/Payable Ratio

46.5%

7.7%

Accounts Receivables > 60 Days

16.0%

1.1%

Accounts Receivables > 90 Days

6.8%

-4.8%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$169,297

$215,833

$186,611

Compensation per Employee

$104,563

$125,966

$110,740

Spread per Employee

$64,733

$89,868

$75,871

Annual New Commission Generated per Validated Producer Average

Top 25%

Commercial P&C

$73,374

$146,073

Personal P&C

$37,952

$59,620

2014 Best Practices Study

Life & Health/Financial

$74,463

$149,171

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

Agencies with Revenues Between $5,000,000 and $10,000,000

# of Service Staff

Commercial P&C

19.5%

13.5

Personal P&C

23.3%

9.5

Group Life & Health/Financial

17.3%

2.8

*Excludes any acquired revenue

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