2011 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 Staff Service Info Technology Insurance Carriers Appendix

Key Benchmarks at a Glance

Average

+25% Profit

+25% Growth

Growth Organic Growth By Line of Business** Commercial P&C

-0.9% 1.8% 6.6%

-8.3%

7.1% 3.0%

Personal P&C

1.7%

Group Medical All Other Group

13.6%

18.6%

-20.4%

*

-15.2%

Total Organic Growth Profit Pro Forma Pretax Profit

1.5%

-1.7%

10.4%

24.0% 27.0%

43.0% 43.8%

28.2% 30.3%

Pro Forma EBITDA

Rule of 20 Score

14.1

22.8

26.0

Financial

Average

Top 25%

Current Ratio

1.42:1

2.23:1

Receivable/Payable Ratio

46.3% 36.5% 17.2%

-5.7% 6.6% 1.2%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$139,843 $80,865 $58,978 Average $47,006 $33,014 $42,634

$171,845 $76,495 $95,351 Top 25% $84,141 $65,500 $98,052 Top 25% $484,882 $337,874 $387,694

$153,245 $91,068 $62,177

Compensation per Employee

Spread per Employee

Annual New Commission Generated per Validated Producer

Commercial P&C

Personal P&C

Life & Health/Financial

2011 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

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

Commercial P&C

$270,863 $202,171 $271,753

Personal P&C

Life & Health / Financial

* Insufficient Data **Excludes any acquired revenue

26