2011 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Revenue Growth by Source (continued)

Key Benchmarks Profile

Average

+25% Profit

+25% Growth

Group Medical L&H Renewals 1

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

88.0% 12.0%

88.4% 16.0%

90.7% 13.3%

New Business 2

Acquired Revenues 3

0.2% 0.0% 0.2%

0.0% 4.4% 4.4%

0.0% 4.0% 4.0%

Organic Growth 4

Total Growth 5

All Other Group L&H Renewals 1

91.5% 18.8%

93.7% 25.6%

103.1%

New Business 2

16.2%

Acquired Revenues 3

0.1%

0.0%

0.0%

Organic Growth 4

10.3% 10.4%

19.3% 19.3%

19.4% 19.4%

Total Growth 5

Individual L&H

Renewals 1

59.1% 37.3% 0.2% -3.7% -3.4%

70.6% 34.4%

52.8% 42.9% 0.0% -4.4% -4.4%

New Business 2

Acquired Revenues 3

0.0% 5.1% 5.1%

Organic Growth 4

Total Growth 5

Total Commissions & Fees Renewals 1

86.9% 13.1%

87.9% 14.5%

89.7% 14.3%

New Business 2

Acquired Revenues 3

0.5% 0.0% 0.5%

0.4% 2.3% 2.7%

0.4% 4.0% 4.5%

Organic Growth 4

Total Growth 5

P&C Contingent Income Growth L&H Bonus Income Growth Investment Income Growth

-7.2% -1.8%

-15.4% -10.1% -26.5%

16.7% -23.9% -15.9%

-22.6%

Total Revenue Growth

-0.7%

0.9%

5.6%

Brokerage Commission Expense Growth

-20.4%

-29.3%

-30.4%

Net Revenue Growth (Organic) Net Revenue Growth (Total)

-0.6% -0.2%

0.7% 1.0%

7.5% 7.9%

1 Renewal Revenues 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 Revenues as a % of prior year’s total revenues for this line of business. The higher the %, the more favorable the results.

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

4 Growth in Revenues from prior year excluding acquired revenues. 5 Growth in Revenues from prior year including acquired revenues.

2011 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

Future Revenue Sources

% of agencies considering line of business as very important:

Surety-Bonding

27.9% 79.1% 62.8%

Individual Life & Health

37.2% 76.7% 51.2%

80

Personal P&C

Group Medical/Health Insurance

Small Commercial P&C

All Other Group Benefits