2015 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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 2.2% 1.1%

5.7% 5.2% 7.1%

Personal P&C Group Medical All Other Group

6.4%

12.5% -8.2%

-0.8% 31.0%

*

*

Total Organic Growth

5.0%

4.4%

16.2%

PROFIT Pro Forma Pretax Profit

30.7% 32.8%

54.9% 54.9%

28.8% 29.7%

Pro Forma EBITDA Rule of 20 Score

22.2

34.4

30.6

FINANCIAL

Average

Top 25%

Current Ratio

1.60:1

2.84:1

Receivable/Payable Ratio

*

* *

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

43.7%

2.5%

0.0%

PRODUCTIVITY Total Agency

Average $131,714 $63,359 $68,355

Top 25% Profit Top 25% Growth

Revenue per Employee

$208,964

$115,212 $57,420 $57,793

Compensation per Employee

$70,104

Spread per Employee

$138,861

Annual New Commissions Generated per Validated Producer Average

Top 25% $68,333 $35,167

Commercial P&C

$39,163 $19,604

Personal P&C

Life & Health/Financial

*

*

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

2015 Best Practices Study

# of Service Staff

Commercial P&C

25.3% 28.1% 38.3%

1.6 2.2 0.5

Personal P&C

Agencies with Revenues Under $1,250,000

Group Life & Health/Financial

*Insufficient Data

3

Note: See page 163 for an explanation of column headings