2015 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

46.7%

43.2%

38.3%

Bonds

3.3%

5.9%

0.4%

Personal Commissions Value Added Services

30.4%

25.6%

38.2%

0.1% 9.7%

0.1% 7.1%

0.1%

Contingent/Bonus

10.0% 87.0%

Total P&C

90.1%

81.8%

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

3.8% 0.9% 4.2% 0.5% 9.3% 0.1% 0.5%

9.0% 1.4% 5.8% 2.0%

1.8% 1.6% 9.0% 0.0%

Bonus/Overrides

Total L&H/Financial

18.1%

12.4%

Investments Miscellaneous

0.1% 0.0%

0.2% 0.4%

GROSS REVENUES

100.0%

100.0%

100.0%

Brokerage Commission Expense

0.4%

1.3%

0.0%

NET REVENUES

99.6%

98.7%

100.0%

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 Between $1,250,000 and $2,500,000

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

31

Note: See page 163 for an explanation of column headings