2012 Best Practices Study

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

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

4.8% 1.1% 0.2% -2.7%

3.7%

6.9%

Personal P&C

-0.2%

-0.1%

Group Medical All Other Group

2.4%

8.5%

-8.2%

-7.7%

Total Organic Growth Profit Pro Forma Pretax Profit

3.2%

4.3%

9.6%

18.7% 21.9%

32.8% 34.8%

23.4% 24.7%

Pro Forma EBITDA

Rule of 20 Score

14.5

21.0

19.0

Financial

Average

Top 25%

Current Ratio

1.34:1

1.91:1

Receivable/Payable Ratio

37.6% 11.5%

-0.9%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

1.4%

5.5%

-7.8%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$166,061 $110,653

$211,325 $130,347

$188,015 $126,085

Compensation per Employee

Spread per Employee

$55,408

$80,978

$61,930

Annual New Commission Generated per Validated Producer

Average $56,103 $40,427 $87,307

Top 25% $82,140 $86,224 $192,345 Top 25% $692,358 $384,151 $675,467

Commercial P&C

Personal P&C

Life & Health/Financial

2012 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

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

Commercial P&C

$371,342 $238,317 $455,998

Personal P&C

Life & Health / Financial

**Excludes any acquired revenue

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