2014 Best Practices Study

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

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

33.8%

32.4%

38.4%

Profitability

# of Accounts Total Revenue

25.8

19.6

27.7

$1,464,122

$1,178,350

$1,576,056

Employee Overview

Revenue per Account

$56,785

$60,257

$56,966

Producer Info

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

17.0%

14.9%

17.2%

Service Staff Info

# of Accounts Total Revenue

47.8

36.0

46.6

Technology

$738,105 $15,438

$543,221 $15,089

$705,875 $15,162

Revenue per Account

Insurance Carriers

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

Appendix

12.0%

12.0%

12.7%

# of Accounts Total Revenue

74.4

64.4

73.2

$521,145

$437,363

$521,224

Revenue per Account

$7,004

$6,787

$7,118

Less than $5,000 % of Book

37.2%

40.7%

31.8%

# of Accounts Total Revenue

3,051.3

3,239.8

2,103.0

$1,613,382

$1,482,380

$1,305,340

Revenue per Account

$529

$458

$621

(as measured by number of lives)

Average

+25% Profit

+25% Growth

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

33.8%

37.7%

33.8%

# of Accounts Total Revenue

10.8

10.0

11.2

$465,918 $43,341

$598,145 $59,815

$472,804 $42,341

Revenue per Account

50 - 100 Lives

% of Book

17.4%

13.9%

21.9%

# of Accounts Total Revenue

11.8

10.0

14.0

$200,081 $17,028

$176,817 $17,682

$261,983 $18,713

2014 Best Practices Study

Revenue per Account

25 - 50 Lives

% of Book

17.1%

12.1%

16.4%

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

# of Accounts Total Revenue

21.5

19.6

22.6

$188,941

$152,963

$196,568

Revenue per Account

$8,796

$7,804

$8,709

Under 25 Lives

% of Book

31.7%

36.3%

27.9%

# of Accounts Total Revenue

228.2

145.7

182.9

86

$324,330

$383,441

$334,944

Revenue per Account

$1,421

$2,632

$1,832