2011 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 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

0.7% 2.1% 3.6% 5.0% 1.1%

0.0% 2.1% 5.7%

6.1% 6.8%

Personal P&C

Group Medical All Other Group

10.4% 25.8%

10.6%

Total Organic Growth Profit Pro Forma Pretax Profit

1.3%

8.3%

20.0% 23.0%

32.5% 33.6%

20.3% 25.2%

Pro Forma EBITDA

Rule of 20 Score

12.6

20.4

25.1

Financial

Average

Top 25%

Current Ratio

1.33:1

1.99:1

Receivable/Payable Ratio

58.2% 10.6%

0.7% 2.1% 1.5%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

2.0%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$149,696 $94,610 $55,086 Average $65,948 $37,601 $47,585

$176,147 $106,345

$159,764 $95,983 $63,780

Compensation per Employee

Spread per Employee

$69,803

Annual New Commission Generated per Validated Producer

Top 25% $130,441

Commercial P&C

Personal P&C

$74,412

Life & Health/Financial

$104,845

2011 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $450,380 $314,305 $417,062

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

Commercial P&C

$272,402 $184,158 $297,404

Personal P&C

Life & Health / Financial

**Excludes any acquired revenue

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