2012 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

5.7% 7.2% 8.5%

4.0% 5.6%

14.7%

Personal P&C

9.6%

Group Medical All Other Group

12.3% 14.3%

11.4% 22.8% 12.4%

10.2%

Total Organic Growth Profit Pro Forma Pretax Profit

4.7%

4.1%

14.5% 17.7%

25.0% 25.9%

15.3% 17.0%

Pro Forma EBITDA

Rule of 20 Score

13.9

16.6

19.3

Financial

Average

Top 25%

Current Ratio

1.27:1

1.79:1

Receivable/Payable Ratio

39.0% 11.8%

8.1% 1.8%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

4.2%

-17.7%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$175,254 $118,607

$194,243 $121,042

$183,753 $123,894

Compensation per Employee

Spread per Employee

$56,647

$73,200

$59,859

Annual New Commission Generated per Validated Producer

Average $92,968 $59,241 $125,050

Top 25% $165,616

Commercial P&C

Personal P&C

$82,820

Life & Health/Financial

$228,969

2012 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $571,425 $448,721 $633,951

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

Commercial P&C

$360,125 $208,943 $421,338

Personal P&C

Life & Health / Financial

**Excludes any acquired revenue

98