2015 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

Revenue Growth by Source

Average

Top 25% Profit

Top 25% Growth

Commercial P&C

97.7% 12.9%

100.2%

108.9%

Renewal Revenues 1

10.2%

14.3%

New Business 2

0.7%

0.4%

0.6%

Acquired Revenues 3 Organic Growth 4

10.6% 11.3%

10.4% 10.8%

23.2% 23.8%

Total Growth 5

Bonds P&C

72.2% 24.7% 0.4% -3.1% -2.8%

74.6% 26.4%

66.5% 24.5% 0.0% -8.9% -8.9%

Renewal Revenues 1

New Business 2

1.8% 1.0% 2.8%

Acquired Revenues 3 Organic Growth 4

Total Growth 5

Personal P&C

94.6% 11.4%

95.6% 13.1%

97.1% 11.8%

Renewal Revenues 1

New Business 2

0.9% 6.0% 6.9%

1.0% 8.7% 9.7%

0.2% 8.8% 9.0%

Acquired Revenues 3 Organic Growth 4

Total Growth 5

Value Added Services P&C Renewal Revenues 1

85.2%

71.0% 11.3%

62.9% 11.4%

3.3% 0.0%

New Business 2

*Insufficient Data

0.0%

0.0%

Acquired Revenues 3 Organic Growth 4

-11.5% -11.5%

-17.8% -17.8%

-25.7% -25.7%

Total Growth 5

1 Renewal Revenues are presented as a % of prior year’s total revenues for this line of business. This figure is impacted by attrition (loss or retention of accounts) and by changes in premium and commission levels. The higher the %, the more favorable the results.

2 New Business is presented as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results.

3 Acquired Revenues are presented as a % of prior year’s total revenues for this line of business. The % indicates the significance of acquired business.

4 Organic Growth represents growth in revenues from prior year excluding acquired revenues. 5 Total Growth represents growth in revenues from prior year including acquired revenues.

2015 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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Note: See page 163 for an explanation of column headings