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

Average

Top 25% Profit

Top 25% Growth

ORGANIC GROWTH BY LINE OF BUSINESS (excludes any acquired revenue) Commercial P&C 10.6% 10.4%

23.2%

Personal P&C Group Medical All Other Group

6.0% 2.7% -5.1%

8.7%

8.8%

-5.4%

-3.4%

-16.2% 10.9%

-23.8% 21.9%

Total Organic Growth

9.1%

PROFIT Pro Forma Pretax Profit

26.7% 29.8%

42.9% 46.3%

26.6% 28.5%

Pro Forma EBITDA Rule of 20 Score

24.1

32.6

34.4

FINANCIAL

Average

Top 25%

Current Ratio

1.35:1 27.2% 20.9%

2.20:1

Receivable/Payable Ratio

-16.1%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

2.5%

7.6%

-5.0%

PRODUCTIVITY Total Agency

Average $164,362 $92,343 $72,020

Top 25% Profit Top 25% Growth

Revenue per Employee

$191,159

$182,155 $101,359

Compensation per Employee

$89,067

Spread per Employee

$102,092

$80,796

Annual New Commissions Generated per Validated Producer Average

Top 25% $95,862 $91,644 $107,995

Commercial P&C

$57,847 $50,288 $54,623

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

16.7% 22.7% 15.3%

6.9 5.0 1.7

Personal P&C

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

Group Life & Health/Financial

55

Note: See page 163 for an explanation of column headings