2012 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

5.1% 1.9% 1.2%

9.0% 3.0% 3.7%

10.2%

Personal P&C

7.2% 4.5%

Group Medical All Other Group

-16.0%

-16.7%

-32.8%

Total Organic Growth Profit Pro Forma Pretax Profit

3.0%

7.6%

12.2%

21.7% 24.4%

34.5% 35.4%

27.8% 29.2%

Pro Forma EBITDA

Rule of 20 Score

15.8

25.9

25.6

Financial

Current Ratio

1.34:1

2.19:1

Receivable/Payable Ratio

36.2% 15.0%

-5.2%

Accounts Receivables > 60 Days Accounts Receivables > 90 Days

1.1%

4.9%

-7.8%

Productivity

Average

+25% Profit

+25% Growth

Revenue per Employee

$150,931 $93,833 $57,097 Average $62,236 $32,164 $59,086

$167,543 $99,815 $67,728

$174,917 $105,742

Compensation per Employee

Spread per Employee

$69,175

Annual New Commission Generated per Validated Producer

Top 25% $133,726

Commercial P&C

Personal P&C

$58,051

Life & Health/Financial

$130,027

2012 Best Practices Study

Commissions Serviced per Service & Sales Support Staff

Average

Top 25% $447,375 $348,920 $421,275

Agencies with Revenues Between $2,500,000 and $5,000,000

Commercial P&C

$309,011 $199,013 $288,255

Personal P&C

Life & Health / Financial

**Excludes any acquired revenue

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