2011 Best Practices Study

Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000

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

1.3% 4.2% 5.2% 6.4%

1.6% 4.7% 6.3% 6.3%

8.5% 3.5%

Personal P&C

Group Medical All Other Group

14.3%

5.8%

Total Organic Growth Profit Pro Forma Pretax Profit

16.1% 19.7%

28.1% 29.6%

20.2% 25.8%

Pro Forma EBITDA

Rule of 20 Score

12.3

18.4

23.0

Financial

Average

Top 25%

Current Ratio

1.28:1

1.85:1

Receivable/Payable Ratio

42.1%

6.5% 3.7% 1.1%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

5.9%

-2.0%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$177,397 $117,724

$223,658 $135,644

$203,950 $126,275

Compensation per Employee

Spread per Employee

$59,673

$88,014

$77,675

Annual New Commission Generated per Validated Producer

Average $79,542 $43,191 $131,957

Top 25% $135,910

Commercial P&C

Personal P&C

$58,541

Life & Health/Financial

$256,805

2011 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $506,229 $303,178 $569,668

Agencies with Revenues Between $10,000,000 and $25,000,000

Commercial P&C

$345,322 $208,727 $386,573

Personal P&C

Life & Health / Financial

**Excludes any acquired revenue

98