2012 Best Practices Study

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

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

90.1% 18.5%

94.8% 17.4%

91.6% 19.8%

New Business 2

Acquired Revenues 3

1.3% 8.5% 9.8%

0.2%

5.9%

Organic Growth 4

12.3% 12.4%

11.4% 17.3%

Total Growth 5

All Other Group L&H Renewals 1

95.6% 14.6%

108.3%

102.0%

New Business 2

6.0% 0.1%

20.8%

Acquired Revenues 3

0.6%

3.0%

Organic Growth 4

10.2% 10.8%

14.3% 14.4%

22.8% 25.8%

Total Growth 5

Individual L&H

Renewals 1

57.8% 36.7% 1.8% -5.5% -3.7% 88.7% 16.4% 2.5% 5.1% 7.6% -3.0% 5.1% 7.6% 3.0% 1.6% -5.3%

50.1% 42.4% 0.0% -7.5% -7.5%

66.4% 37.3%

New Business 2

Acquired Revenues 3

8.9% 3.7%

Organic Growth 4

Total Growth 5

12.6%

Total Commissions & Fees Renewals 1

88.6% 14.9%

88.4% 22.2%

New Business 2

Acquired Revenues 3

2.1% 3.5% 5.6%

7.0%

Organic Growth 4

10.6% 17.6%

Total Growth 5

Brokerage Commission Expense Growth Net Commissions & Fees Growth (Organic) 6 Net Commissions & Fees Growth (Total) 7

-13.2%

-19.0% 10.8% 18.0% 12.3% 27.5% -6.3% 19.1% 12.4% 19.5%

3.7% 5.8%

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

16.8% -7.5%

2.0% 5.9% 4.1% 6.0%

Gross Revenue Growth

7.0% 4.7% 7.1%

Net Revenue Growth (Organic) 8 Net Revenue Growth (Total) 9

2012 Best Practices Study

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.

6 Growth in Total Commissions & Fees less Brokerage Commission Expense from prior year excluding acquired revenues. 7 Growth in Total Commissions & Fees less Brokerage Commission Expense from prior year including acquired revenues. 8 Growth in Net Revenues (Gross Revenue less Brokerage Commission Expense) from

prior year excluding acquired revenues.

9 Growth in Net Revenues (Gross Revenue less Brokerage Commission Expense) from prior year including acquired revenues.

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

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