P R A D

Commercial Lines

<$10M

$10M-$25M

>$25M

% Hired

% Success

% Hired

% Success

% Hired

% Success

Hiring Background:

College hire

6%

86% 71% 73%

7%

53% 49% 50%

7%

58% 56% 56%

Outside the industry

35% 41%

31% 38%

32% 39%

Total – No Insurance Experience

Insurance – not sales

11%

43%

7%

535

9%

60%

Experienced producer: Ins. producer – came w/out book Ins. producer – came w/ book Total – with Insurance Experience

41%

63% 90% 63%

44% 11% 62%

63% 77% 64%

35% 17% 61%

54% 76% 61%

8%

59%

Total Hiring

100%

67%

100%

59%

100%

59%

Employee Benefits

<$10M

$10M-$25M

>$25M

% Hired

% Success

% Hired

% Success

% Hired

% Success

Hiring Background:

College hire

0%

N/A 60% 60%

5%

25% 53% 50%

5%

47% 63% 59%

Outside the industry

17% 17%

38% 43%

16% 21%

Total – No Insurance Experience

Insurance – not sales

13%

25%

14%

75%

10%

55%

Experienced producer: Ins. producer – came w/out book Ins. producer – came w/ book Total – with Insurance Experience

40% 30% 83%

58% 89% 64%

31% 12% 57%

73% 90% 77%

45% 24% 79%

54% 84% 63%

Total Hiring

100%

63%

100%

65%

100%

62%

Source: Supplemental Survey

There are several conclusions that can be drawn from this data:

• The success rate for hiring is higher for smaller firms; and the differences are material. This may be due in part to the fact that larger firms tend to have higher expectations for success and terminate non-performers faster. • Smaller firms are actually more likely to hire producers with no insurance experience in commercial lines. They are less likely to hire producers with no experience in employee benefits. • In commercial lines, agencies with >$25M in revenues hire over two times as many producers (proportionately) with books of business than firms with revenues <$10M (17% versus 8%, respectively).

23 Producer Recruiting & Development Study