2015 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

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

Revenues

(% by Source)

Average

Top 25% Profit Top 25% Growth

Property & Casualty Commercial Commissions & Fees

53.6%

56.1%

55.9%

Bonds

4.3% 6.1% 1.7% 6.1%

4.8% 5.8% 1.0% 6.7%

6.4% 2.1% 3.1% 5.5%

Personal Commissions Value Added Services

Contingent/Bonus

Total P&C

71.9%

74.4%

73.0%

Life & Health/Financial Group Medical Commissions & Fees All Other Group Commissions & Fees Individual L&H Commissions & Fees

18.6%

15.8%

20.5%

5.0% 1.2% 1.7%

5.2% 1.6% 1.9%

3.8% 0.6% 1.1%

Bonus/Overrides

Total L&H/Financial

26.5%

24.6%

26.0%

Investments Miscellaneous

0.5% 1.2%

0.3% 0.7%

0.4% 0.6%

GROSS REVENUES

100.0%

100.0%

100.0%

Brokerage Commission Expense

2.5%

1.9%

2.7%

NET REVENUES

97.5%

98.1%

97.3%

Revenue by Source (% of Gross Revenues)

Average

Top 25% Profit

Top 25% Growth

60.0%

50.0%

40.0%

2015 Best Practices Study

30.0%

20.0%

% Total Revenue

Agencies with Revenues Over $25,000,000

10.0%

0.0%

P&C Commercial

P&C Bonds Comm & Fees

P&C Personal Comm & Fees

P&C VAS Fees

P&C Contingent/ Bonus

L&H Group Medical Comm & Fees

L&H All Other Group Comm & Fees

L&H Individual

L&H Bonus/ Overrides

Investments Miscellaneous

Comm & Fees

Comm & Fees

135

Note: See page 163 for an explanation of column headings