2015 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

Key Benchmarks Profile Revenues Expenses Profitability Employee Overview Producer Info Service Staff Info Technology Insurance Carriers Appendix

Average

Top 25% Profit

Top 25% Growth

ORGANIC GROWTH BY LINE OF BUSINESS (excludes any acquired revenue) Commercial P&C 9.1% 12.5%

21.0% 10.0% 12.5%

Personal P&C Group Medical All Other Group

4.6% 4.3% 7.9% 9.5%

8.9%

13.7% -7.9% 14.8%

6.7%

Total Organic Growth

20.2%

PROFIT Pro Forma Pretax Profit

20.2% 23.0%

30.1% 31.1%

20.9% 22.9%

Pro Forma EBITDA Rule of 20 Score

19.6

30.1

27.5

FINANCIAL

Average

Top 25%

Current Ratio

1.37:1 40.1% 10.4%

2.11:1 7.9% 0.7% -7.0%

Receivable/Payable Ratio

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

4.0%

PRODUCTIVITY Total Agency

Average $184,830 $116,042

Top 25% Profit Top 25% Growth

Revenue per Employee

$228,030 $132,524

$175,416 $105,326

Compensation per Employee

Spread per Employee

$68,787

$95,506

$70,090

Annual New Commissions Generated per Validated Producer Average

Top 25% $176,231

Commercial P&C

$87,288 $42,672 $116,289

Personal P&C

$70,128

Life & Health/Financial

$233,289

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

2015 Best Practices Study

# of Service Staff

Commercial P&C

18.6% 26.8% 15.8%

26.6 11.8

Personal P&C

Agencies with Revenues Between $10,000,000 and $25,000,000

Group Life & Health/Financial

9.5

107

Note: See page 163 for an explanation of column headings